It sounds exotic, but the Blue Lagoon is actually geothermal steam runoff from a power plant. It's man-made. There are natural hot springs, but they're tougher to get to around the Golden Circle. Since I went in January, it was brutal outside, and the bus ride to the Blue Lagoon was about as wild as I wanted to get in those conditions.
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Hmm interesting that it is man-made. That does lesson the appeal a bit. I’d love to visit Iceland sometime when the northern lights are happening and hike to somewhere secluded to watch them.