I just georeferenced a map of Iceland using the ISN93 coordinate system. It looks like it was successful since when I transform some random coordinates to WGS84 and compare them to Google Maps it does match.
For the raster image I used a map 1:2'000'000 that I downloaded from the cadastral office, so it should be accurate.
But when I try to view it on QGIS I need a scale of at least 1:10'000'000'000 to see it.
Why is that?