The cryptocurrency industry in Iceland is making progress but has not fully realized its potential, with some unique geographical advantages yet to be developed.
Güli Gislason, Chief Investment Officer of Viska Digital Assets, emphasized the impact of the 2008 banking crisis, which led to capital controls on the Icelandic Krona and increased awareness of cryptocurrencies and blockchain technology.
In 2014, interest in cryptocurrencies grew stronger in Iceland, with Baldur Frigjar Orinsson airdropping Aurora coins to 330,000 people from the national database, leading many to convert their tokens into Bitcoin.
Despite these developments, Gislason believes that Iceland lags behind in cryptocurrency adoption and education. He pointed out that despite managing a cryptocurrency fund for two years, Viska Digital, the perfecting and acceptance of cryptocurrency funds in Iceland as an asset class is still in its early stages compared to neighboring countries.
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Iceland excels in renewable energy, with over 99.98% of its electricity coming from renewable sources such as geothermal, hydro, and wind resources. This makes it an ideal choice for Bitcoin mining, utilizing excess energy that would otherwise go to waste.
However, increased demand for electricity from electric cars and limited development of new power plants led to a period of energy shortage and environmental issues. While Bitcoin miners have played a role in utilizing surplus energy, they still face negative perceptions.
The founder of Viska Digital Assets is also involved in the Bitcoin mining company Greenblocks, which faces challenges but also sees potential. Gislason emphasized the need to build more power plants and highlighted the investment criteria for hedge funds: liquidity, market interest, and proper risk management. The company avoids high-risk entities such as FTX and Silvergate Bank by focusing on these factors.
He is optimistic about the future, believing that the industry is in an exciting phase of adoption curve, with major players like BlackRock increasingly entering Bitcoin and other crypto assets.