VIDEO: Iceland – a 'hot' destination for Bitcoin mining

Bitcoin mining in Iceland

Bitcoin mining in Iceland | Screen capture from NYT video

Iceland is becoming popular for a very different type of mining: Bitcoin mining.

The Bitcoin mines of Iceland are the subject of a new Dealbook feature which looks at exactly how and why bitcoins are created out of this remote island nation.

Normally, mining for bitcoins is a process that requires strong, expensive computers and a lot of energy.

Cloud Hashing, according to its promotional video, allows anyone to mine for Bitcoins. Essentially, the company rents out computing power to people who want to mine, but don't want to fork out the cash for the computer.

The company has set up these 'mines' in Iceland where energy is cheap, abundant and renewable.

Another major obstacle in Bitcoin mining is cooling the computers – they're computing extremely complex algorithms, 24 hours per day. For Cloud Hashing that's not an issue because in Iceland it's not hard to find cold air.

Cloud Hashing's Bitcoin mines

See the full Dealbook feature by Nathaniel Popper here.