Iran Bans Crypto Mining Due to Power Shortages
Iran is taking strong measures against crypto mining. By introducing a temporary ban, the local authorities are trying to prevent excessive energy consumption caused mainly by unregistered farms mining BTC, among other things.
- Iran bans crypto mining for 4 months;
- According to some sources, 85% of cryptocurrencies in Iran are operating illegally and the energy demand generated by them reaches 2 GW.
Iran has banned the mining of cryptocurrencies such as bitcoin. The resolution is temporary and will last 4 months (until September 22, 2021). This happened shortly after many major cities experienced repeated power outages. Although Iranian President Hasan Rouhani claims that the main reason for them is the drought and the associated low efficiency of hydroelectric power plants, the impact of crypto miners cannot be ignored.
"Everybody knows a few miners in the area who are mining Bitcoin," said Iranian President Hasan Rouhani.
Mining of BTC and other cryptocurrencies is very popular in Iran, among other things due to low energy prices, which we wrote about in more detail in this news. Due to the scale of this activity, the country introduced regulations requiring its registration. President Hasan Rouhani claims that legally operating crypto mining farms collectively draw about 300 MW of energy. State-owned power grid operator Tavanir gives a more accurate figure of 209 MW. However, according to reports, this is only a small part of the total mining-related energy consumption in Iran. Up to 85% of miners are operating illegally, and their power consumption can reach up to 2 GW. Energy companies have reported that licensed cryptocurrencies have voluntarily ceased operations.
The Verge reports that Iranian crypto miners may account for up to 4.5% of global cryptocurrency activity. The question is, how will the price of BTC react when such a percentage suddenly "leaves the stage"? Cryptocurrency values can fluctuate even under the influence of the words of individual people, as in the case of Elon Musk, let alone large-scale regulations.
