Iceland's crypto future looks promising, but there are many obstacles

The crypto industry in Iceland is progressing but has not yet reached its full potential, with several unique geographic advantages still untapped.

Güli Gislason, Chief Investment Officer at Viska Digital Assets highlighted the impact of the 2008 banking crisis that led to capital controls on the Icelandic krona, raising awareness of cryptocurrencies and Block the technology.

In 2014, Icelanders' interest in cryptocurrencies grew even more when “Baldur Friggjar Óðinsson” (Baldur Frigjar Orinsson) airdropped Auroracoin to 330,000 people from the national database, allowing many of them to convert their tokens into Bitcoin .

Despite this development, Gislason thinks , that Iceland is lagging behind in crypto adoption and education. He noted that although Viska Digital has been managing crypto funds for two years, the refinement and recognition of cryptocurrencies as an asset class in Iceland is still in its infancy compared to neighboring countries.

Iceland excels in renewable energy sources, with over 99.98% of the country's electricity produced from renewable sources, thanks to geothermal, hydro and wind resources. This makes it ideal for Bitcoin mining, where excess energy that would otherwise be wasted can be used.

However, increased demand for electricity from electric vehicles and limited development of new power plants have led to periods of energy shortages and environmental concerns, putting Bitcoin miners in a negative light despite their role in harnessing excess energy.

Viska Digital Assets, whose founders are also involved in Bitcoin mining company Greenblocks, faces challenges but sees potential. Ghislason stressed the need for more power plants and highlighted the hedge fund's criteria for investment: liquidity, market interest and proper risk management. The company avoids exposure to risky entities such as FTX and Silvergate Bank by focusing on these factors.

He is optimistic about the future, believing that the industry is at an exciting stage of the adoption curve, with major players such as BlackRock getting involved in Bitcoin and other cryptoassets.