The crypto industry in Iceland is advancing, but has not yet reached its full potential, with several unique geographic advantages still untapped.
Gyöli Gíslason, Chief Investment Officer at Viska Digital Assets, emphasized the impact of the 2008 banking crisis, which led to capital controls on the Icelandic krona, raising awareness of cryptocurrencies and blockchain technology.
In 2014, Icelandic interest in cryptocurrencies surged further when “Baldur Friggjar Óðinsson” conducted an airdrop of Auroracoin to 330,000 individuals from the national database, allowing many to convert their tokens to Bitcoin.
Despite this development, Gíslason believes that Iceland lags in crypto adoption and education. He noted that while Viska Digital has been managing crypto funds for two years, the refinement and recognition of cryptocurrencies as an asset class in Iceland are still in their early stages compared to neighboring countries.
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Iceland excels in renewable energy sources, with over 99.98% of the country’s electricity generated from renewable sources, thanks to geothermal, hydro, and wind resources. This makes it ideal for Bitcoin mining, utilizing excess energy that would otherwise be lost.
Increased demand for electricity from electric vehicles and limited development of new power plants, however, have led to periods of energy shortages and environmental concerns, casting Bitcoin miners in a negative light despite their role in utilizing excess energy.
Viska Digital Assets, whose founders are also involved in the Bitcoin mining company Greenblocks, faces challenges but sees potential. Gíslason stressed the need for more power plants and highlighted hedge fund investment criteria: liquidity, market interest, and proper risk management. The company avoids exposure to risky entities like FTX and Silvergate Bank, focusing on these factors.
He is optimistic about the future, believing the industry is at an exciting stage of the adoption curve, with major players like BlackRock beginning to engage with Bitcoin and other crypto assets.
