Iceland – A Bitcoin Miner’s Dream
Although Iceland is an incredibly beautiful country, it has also faced ugly times. In 2008 it was completely shattered by a financial crisis that almost completely crippled the economy. Despite the devastating effects of the crisis, efforts by the government narrowly avoided bankruptcy. Nearly every resident was affected by this situation and in the worst week, their stock market suffered a 96% drop in value, pensions dropped as much as 25% and inflation was on the loose. A number of local businesses were forced to close their doors.
Banks were nationalized and the native people resorted to protesting in the streets. They called for the resignation of many top leaders and reforms to help the country back. Years past and Iceland slowly began building its economy from the remnants of the financial crisis. As 2015 approached, the world took notice of Iceland’s recovery. Iceland’s rise from the financial disaster could only be described as miraculous.
Iceland’s success could be attributed to its ability to let banks go under, implement overarching measures and its own currency which had to be devalued. Iceland enacted new controls on the banking and monetary systems in order to mitigate the crisis. This included high taxes on residents, the inability for foreign investors to move their money out of the country and controlled bonuses. One of these controls was the ban of Bitcoin exchange in the country.
Although Iceland contains some of the world’s largest bitcoin mining facilities, the government decided to make Bitcoin exchange illegal. This allowed natives to own and mine Bitcoin, but it could not be considered a currency in Icelandic law. Many people in Iceland still saw the potential for a digital currency structure outside of Bitcoin. In 2014, another cryptocurrency, Auroracoin was founded and used as an alternative to bitcoin. It had been created to address government restrictions imposed by the country.
Many criticize Bitcoin as a tool for laundering money and committing financial crime. Contrary to this belief, bitcoin may be able to help address crime as Bitcoin is not anonymous. All transactions are made public and can be accessed by anyone. Implementing Bitcoin would be a cost-effective way to maintain currency when compared to existing methods. An important aspect of allowing bitcoin to be free in Iceland is the ability to create an environment conducive to business growth and expansion. This would also help to encourage high-tech growth.
Although no country has seriously considered using Bitcoin as a national currency, there are some major benefits. With Iceland’s bold moves in terms of finances, this could be a revolutionary move. There are already a number of mining locations in Iceland and if you are looking to invest in this industry Swapp Agency can connect you with trusted people who can assist with Bitcoin mining.