It's such a cool place! Essentially what you've got is this big rift valley where the sea floor is spreading--yes, the sea floor. Only above water. It's amazing! In fact, Iceland is one of two places in the world where we can see this kind of rifting, the other being the Great Rift Valley in Africa. In the above picture you can see that this is indeed a valley, and on the east you have the Almannagjá, which is the boundary of the North American plate.
It's huge--it's just one big wall of basalt. On the other side of the valley lies Hrafnagjá, which is more or less the same thing only for the Eurasia plate. In between lie fissures, the result of faulting, etc. Some are filled with water from the nearby Lake Þingvallavatn:
It's just a spectacular area all around, rich with both Icelandic history and geologic history... A must see!
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