According to Jaran Mellerud, an analyst at Bitcoin mining company Luxor, Iceland leads the way in Bitcoin hashrate production per capita. Despite contributing only 1.3% of the global hashrate production with an estimated 120 MW, Iceland's population of only 370,000 people means that it generates the highest hashrate per capita.
Mellerud asserts that Iceland's broad access to sustainable geothermal and hydro energy allows this northern country to support Bitcoin mining. The unique geography of Iceland provides ample opportunities for electricity production, making it the most electricity-rich nation.
While both Iceland and Norway rely solely on renewable energy, Iceland generated almost twice as much electricity as Norway in 2021.
Iceland's stable source of energy minimizes fluctuations in electricity prices, while the country's cold summers provide auspicious weather conditions that simplify the maintenance of mining pools. In addition, there are currently no specific regulations on cryptocurrency mining in Iceland, except for a 20% tax on profits, which makes the country attractive to both domestic and foreign miners. Borealis Data Center, Greenblocks, and Advania Data Centers are among the largest domestic companies that mine Bitcoin.
However, despite the renewability of Iceland's electricity, there is a limited amount of resources available. As Mellerud pointed out in his Twitter post:
"The scarce electricity means that the bitcoin mining industry has limited growth potential in Iceland and will likely stay at around 120 MW for the foreseeable future."
According to recent statistics, the United States is currently a leader in Bitcoin mining, producing 35.4% of the global hashrate. China had also been a leader in the market, but its government banned mining in 2021. Kazakhstan is another top Bitcoin mining country that mostly relies on its cheap coal to generate sufficient electricity.
In addition to these countries, Russia, Canada, Ireland, Malaysia, and Germany are among the other countries that make a significant contribution to global hashrate production.