Bitcoin and the law of unintended consequences

An interesting energy related, sort of, news item.

KEFLAVIK, Iceland — Iceland is expected to use more energy “mining” bitcoins and other virtual currencies this year than it uses to power its homes.

With massive amounts of electricity needed to run the computers that create bitcoins, large virtual currency companies have established a base in the North Atlantic island nation blessed with an abundance of renewable energy.

The new industry’s relatively sudden growth prompted lawmaker Smari McCarthy of Iceland’s Pirate Party to suggest taxing the profits of bitcoin mines. The initiative is likely to be well received by Icelanders, who are skeptical of speculative financial ventures after the country’s catastrophic 2008 banking crash.

Keflavik has always been odd.  It was founded in the 16th Century by Scottish engineers and entrepreneurs and became a flight hub for the Allies during World War Two.  It's noted for its musicians the Icelandic rock and roll hall of fame is located in the city of 15,000.

Now, Bitcoin.