Icelands Cryptocurrency Sector Shows Potential for Growth Yet Encounters Energy Obstacles

Iceland’s cryptocurrency industry is advancing, but it has not yet reached its full potential, and there are still untapped advantages, including those offered by its unique geography.
To gain insights into the opportunities and challenges facing Iceland’s crypto industry, Cointelegraph recently interviewed Gulli Gislason, the chief investment officer at Viska Digital Assets, an Icelandic liquid token investment fund.
Gislason first discussed the 2008 banking crisis, which severely impacted Iceland. In response, the government implemented capital controls, restricting the movement of the Icelandic króna. This crisis opened people’s eyes to the potential of cryptocurrencies and blockchain technology as an asset class.
Interest in cryptocurrencies was further fueled in 2014 when Baldur Friggjar Óðinsson, a pseudonymous individual, airdropped Auroracoin to the 330,000 people listed in Iceland’s national ID database. Gislason noted that although it never became a widely used currency, the airdropped tokens spurred interest and some individuals were able to convert them into Bitcoin.
However, Gislason believes that Iceland still has a long way to go in terms of adoption and education about cryptocurrencies. Despite actively managing funds within the crypto space for about two years, Gislason feels that Iceland is still lagging behind other countries in terms of acknowledging crypto as an asset class.
Iceland is rich in renewable energy, with over a quarter of its power generated by geothermal energy due to its unique geography. The country also has significant hydropower and wind power, with almost 100% of its total power supply coming from renewables. Gislason highlighted that this makes Iceland an ideal location for Bitcoin mining.
While there is potential for Bitcoin miners in Iceland, challenges such as increased demand for electricity, minimal development of new power plants, and energy shortages need to be addressed. Gislason also addressed environmental concerns and the false narrative around Bitcoin miners being a net negative for the energy industry.
Looking to the future, Gislason remains optimistic about the industry’s potential. He believes that officials are beginning to recognize the pressing need for more energy, and that the industry is at an exciting stage of adoption.
Discussing Viska Digital Assets, Gislason emphasized the fund’s focus on investing in tokens with sufficient liquidity and selecting the right counterparties. The fund also prioritizes proper risk management and has a high focus on long-term investments.
In conclusion, Gislason expressed excitement about the future of the crypto industry, noting that it is entering an exciting stage of adoption and that predominant players are starting to participate actively and talk positively about Bitcoin and other crypto assets. He believes that this is the most exciting time for the crypto industry.