Enlarge / The Icelandic town of Keflavik has emerged as a hub of Bitcoin mining. (credit: Pierre-Selim)

Bitcoin-mining operations are set to overtake domestic residential energy consumption in Iceland later this year, according to a local energy company. As a result, one lawmaker is considering what could or should happen if Iceland continues to expand its role as a major bitcoin-mining hub.

Iceland, the North Atlantic island nation with a population of just 340,000, is powered almost entirely by renewable energy, mostly geothermal, hydroelectric, and wind.

Johann Snorri Sigurbergsson, a manager at energy firm Hitaveita Sudurnesja, told the Associated Press that he expected bitcoin mining to hit 100 megawatts this year.