Iran temporarily bans Bitcoin mining to save electricity

Iran temporarily bans Bitcoin mining to save electricity (1)

Iran is one of the leaders in terms of cryptocurrency mining. As of early 2022, Iran controlled about 4.5% – 7% of the global hash rate of the world’s most popular cryptocurrency, Bitcoin (BTC). Not surprisingly, the latest decision by the authorities in Iran has caused a stir in the world of those interested in cryptocurrencies – as they have ordered a halt to all crypto digging activities. We tell you about the reason behind this decision and the situation in Iran below.

Iran and cryptocurrency mining over the years

But before we move on to the current situation in Iran, let’s take a look at how the situation in this country looked in the past. As we have already mentioned, Iran is a country with one of the highest cryptocurrency mining rates in the entire world. This is caused by cheap electricity. Starting in 2019, the country started issuing special licenses that allow crypto digging. As a result, crypto farms also started paying more for energy, plus an additional “export rate”, which consequently caused many miners to stay “in the dark” and mine tokens illegally. It is estimated that licensed miners consume about 300 MW of electricity per day, while unlicensed miners consume 3,000 MW, or 10 times as much.

Cryptocurrency mining banned even with a license

This is the reason why the new decision of the Iranian authorities, which bans licensed miners from mining cryptocurrencies, has caused a very big controversy among those involved. According to the official communiqué, cutting off power supply to authorized crypto farms is part of a larger operation aimed at saving electricity. 

The Iranian government has decided on such drastic measures because it anticipates a significant increase in energy demand across the country during the upcoming winter months. In an effort to avoid an energy deficit, the crypto industry has been “targeted” because crypto farms are known to consume huge amounts of energy.

Iran’s Power Generation, Distribution and Transmission Company has ordered authorized crypto mining centers to decommission highly energy-intensive equipment. The order also affected the English business newspaper, Financial Tribune. The country’s president, Mohsen Rajabi Mashhadi, also spoke on the matter. He explained that the closure of the mine is related to the reduction of liquid fuel consumption in power plants and the cooling of the climate. Will Iran withdraw from its decision? So far, there are no indications of this, but our editors will keep their fingers on the pulse and follow the latest news.

Disclaimer: Blockbulletin does not take accountability of investments based on the information of the website. We highly advice readers to make extensive research prior to any invest

Share this post

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email

More News

What lies ahead for Cardano in 2022

What lies ahead for Cardano in 2022?

Charles Hoskinson, the creator of Cardano, shared what lays ahead for the smart contract ecosystem during one of his regular appearances on YouTube. So what is in…

Crypto trends that may occur in 2022

The beginning of a new year is a time of speculation about the future of the cryptocurrency market. The trends in 2021 were pretty clear, but will…
All articles loaded
No more articles to load

Knowledge Base

What is Avalanche (AVAX)?

Avalanche (AVAX) is a blockchain, which conquers the hearts of programmers and at the same time is a great bargain…

What is Sandbox (SAND)?

In this material, we take a look at one of the fastest growing spaces in the metaverse family. We are…
Polygon

What is Polygon (MATIC)?

Another coin worth looking at is Polygon (MATIC). It is especially liked by many investors. So what makes its popularity…
All articles loaded
No more articles to load

Analyses

Bitcoin Price on a Larger Scale

Bitcoin Price on a Larger Scale

Short-term analysis can often make you shudder. Daily news, both positive and negative, puts the Bitcoin price in dynamic upward as well as downward movements.…
All articles loaded
No more articles to load

Knowledge Base

What is Avalanche (AVAX)?

Avalanche (AVAX) is a blockchain, which conquers the hearts of programmers and at the same time is a great bargain for investors. What distinguishes the…

What are stablecoins and how can you use them?

In recent years, cryptocurrencies are experiencing a real “boom”! And not just for cryptocurrencies – the rise in popularity applies to blockchain technology in general.…

What is Sandbox (SAND)?

In this material, we take a look at one of the fastest growing spaces in the metaverse family. We are talking about Sandbox and SAND…

What is Polygon (MATIC)?

Another coin worth looking at is Polygon (MATIC). It is especially liked by many investors. So what makes its popularity constantly growing? Support for Ethereum…

What is Shiba Inu (SHIB)

Shiba Inu (SHIB) is one of the most sought-after coins on the market. This is evidenced by its dynamic rallies and global interest. But does…

Who is Satoshi Nakamoto?

The world’s biggest cryptographic mystery remains unsolved to this day. It is speculated whether Satoshi Nakamoto is a single person or perhaps the name of…
All articles loaded
No more articles to load