Reykjavik is the northernmost capital in the world. The capital area has about a total of 60% of Iceland’s population, which is about 360.000 people. Ingolfur Arnarson, the first settler of Iceland (according to Landnama, the Book of Settlement), built his farm on the peninsula where the city stands today. The book says that Arnarson decided the location of his settlement using a traditional Norse method. He cast his high seat pillars into the ocean when he saw the coastline, then he settled where the pillars came to shore. The town got its name “Smoky Bay” (Reykjavik) after the columns of steam that rose from the hot springs in the area and made such a deep impression on the first settlers.
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