Iran seizes 1,000 Bitcoin mining machines after power spike

[peter0425]

Authorities in Iran have seized roughly 1,000 Bitcoin mining machines from two former factories, according to state TV reports.

The action was taken following a spike in electricity consumption.

Demand for power rose by 7% in June and cryptocurrency mining was thought to be the main cause, an energy ministry spokesman told local state-run media.

One researcher said Bitcoin was gaining more and more attention in Iran as a potential means of storing wealth.

"Two of these bitcoin farms have been identified, with a consumption of one megawatt," Arash Navab, an electricity official, told state television.

https://www.bbc.com/news/technology-48799155

Can this confirmed that indeed Iran is already into bitcoin now as a hedge specially as fears of a total war with US?

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[partysaurus]

Authorities in Iran have seized roughly 1,000 Bitcoin mining machines from two former factories, according to state TV reports.

The action was taken following a spike in electricity consumption.

Demand for power rose by 7% in June and cryptocurrency mining was thought to be the main cause, an energy ministry spokesman told local state-run media.

One researcher said Bitcoin was gaining more and more attention in Iran as a potential means of storing wealth.

"Two of these bitcoin farms have been identified, with a consumption of one megawatt," Arash Navab, an electricity official, told state television.

https://www.bbc.com/news/technology-48799155

Can this confirmed that indeed Iran is already into bitcoin now as a hedge specially as fears of a total war with US?

read an article about iran being the new hotspot for crypto mining thanks to the low price for electricity, did not realy belive it sounded abit off in my eyes, now i guess it was true after all lol, also wonder how this will affect btc if usa goes to war with iran.

[DaCryptoRaccoon]

Authorities in Iran have seized roughly 1,000 Bitcoin mining machines from two former factories, according to state TV reports.

The action was taken following a spike in electricity consumption.

Demand for power rose by 7% in June and cryptocurrency mining was thought to be the main cause, an energy ministry spokesman told local state-run media.

One researcher said Bitcoin was gaining more and more attention in Iran as a potential means of storing wealth.

"Two of these bitcoin farms have been identified, with a consumption of one megawatt," Arash Navab, an electricity official, told state television.

https://www.bbc.com/news/technology-48799155

Can this confirmed that indeed Iran is already into bitcoin now as a hedge specially as fears of a total war with US?

This is something I have been thinking about America push new sanctions on Iran but we live in a new world where blocking a country to things like finance services will push country's like Iran, Iraq, Turkey, ect towards bitcoin once they see the power it can yeild and no sanctions on earth can do anything to it.

D you think they will mine for there own now with the machines?

[traderethereum]

Authorities in Iran have seized roughly 1,000 Bitcoin mining machines from two former factories, according to state TV reports.

The action was taken following a spike in electricity consumption.

Demand for power rose by 7% in June and cryptocurrency mining was thought to be the main cause, an energy ministry spokesman told local state-run media.

One researcher said Bitcoin was gaining more and more attention in Iran as a potential means of storing wealth.

"Two of these bitcoin farms have been identified, with a consumption of one megawatt," Arash Navab, an electricity official, told state television.

https://www.bbc.com/news/technology-48799155

Can this confirmed that indeed Iran is already into bitcoin now as a hedge specially as fears of a total war with US?

This is something I have been thinking about America push new sanctions on Iran but we live in a new world where blocking a country to things like finance services will push country's like Iran, Iraq, Turkey, ect towards bitcoin once they see the power it can yeild and no sanctions on earth can do anything to it.

D you think they will mine for there own now with the machines?

I am sure they will search the other way to continue to survive, and if they see that bitcoin can fill what they want, they will use bitcoin soon.
Yes, many countries have afraid about the war with the US because many of them are a small country which needed help from the other country.
Maybe Iran will mine bitcoin too like people in the other country, and I think they can get the benefits of mining bitcoin itself so they can use bitcoin for their finances.

[davis196]

It's highly unlikely for Iran to be the new "crypto mining paradise".Iran was never really bitcoin-friendly,due to the project of creating it's own cryptocurrency or due to the authoritarian nature of it's government.It's well known that authoritarian countries aren't crypto-friendly.
However,I'm surprised by the amount of mining hardware,that is currently used in Iran.

[eternalgloom]

It's well known that authoritarian countries aren't crypto-friendly.

That's not always the case though, Belarus for example is very crypto-friendly and it's a dictatorship...
While some democratic countries can be completely against crypto.

In the case of Iran, I guess they have to do something to prevent their national currency to drop even more.
Not sure if they're already in the hyper-inflation stage, but things aren't going too well with their currency.

[leonair]

Does the Iranian government has a law regarding power consumption? because why would the authorities confiscated the 1,000 Bitcoin mining machines if those two factories are operating legally and paying the right amount to its electricity cost.

Not unless these miners are using Mosques to operate their activities because I've read that it has free electricity.

[hatshepsut93]

Can this confirmed that indeed Iran is already into bitcoin now as a hedge specially as fears of a total war with US?

Did you read your own article? They sized 1000 miners, how is this a hedge if they are fighting against Bitcoin business? They've been putting obstacles in Bitcoin's way in the past, all this talk that Iran will use Bitcoin to bypass sanctions is just baseless speculation, because on practice we see that Iranian authorities are against Bitcoin, and also it doesn't make much sense how Bitcoin can help bypass sanctions - American and European companies aren't going to work with Iran, regardless of what currency Iran uses, period.

[Eraldo Coil]

I think the confiscation or seizing of these 1,000 bitcoin is reasonable since it has to do something with electricity. I would say that electricity is a very important factor and if it is being consumed to much just because you want to earn a lot then there must be a problem I would say.

[buwaytress]

Probably true, if not to the extent, then definitely to the actual happening. I suppose you could somehow blame the coverage since last year, touting the cheap electricity, how you could use old mining rigs and still turn a profit, and then investors from Eastern Europe and the Caucasus (Armenia surprised me because it's actually state supported AND cheap there already).

Then last week's news that the ministry was going to crack down. About time it translated into seizures I guess.

[xWolfx]

That's exactly what those dictatorships tend to do.

The funny part is that if they are like the ones in Venezuela(Who are the others who did something like that before) then the corruption inside government agencies will lead them to use the confiscated machines to make money for some individuals, not even for the government itself, while the government itself pays for all the expenses of course.

Those kind of things happen too much with dictatorships. Not that relevant at all unless you're there.

[spadormie]

I just have a question bothering my mind because of this news. Why is bitcoin mining to be blamed when power spikes? Why it should be it all the time whenever there is a power spike? I mean, 10 years ago, let's say that's when bitcoin mining also rises, why are they banning now?

[yohananaomi]

Authorities in Iran have seized roughly 1,000 Bitcoin mining machines from two former factories, according to state TV reports.

The action was taken following a spike in electricity consumption.

Demand for power rose by 7% in June and cryptocurrency mining was thought to be the main cause, an energy ministry spokesman told local state-run media.

One researcher said Bitcoin was gaining more and more attention in Iran as a potential means of storing wealth.

"Two of these bitcoin farms have been identified, with a consumption of one megawatt," Arash Navab, an electricity official, told state television.

https://www.bbc.com/news/technology-48799155

The good news is that this means that indeed Crypto has got a good place, but it's also a pity just because of electricity consumption, mining is legally acted, actually if they pay for electricity usage properly, what is to blame? if bitcoin is used as a deviant storage, it is indeed unfortunate, obviously it is illegal in any country, once again do they act like that?

Can this confirmed that indeed Iran is already into bitcoin now as a hedge specially as fears of a total war with US?

I doubt that Bitcoin is associated with a total war between Iran and US, not yet seen to point there and hopefully it doesn't happen.

[Harlot]

Tough hit for foreign miners looking to set up shop in Iran as their main country of operations, before this I was reading a lot of news that Chinese miners are preparing to move out of China in favor of continuing their mining operations in Iran as electricity is much cheaper there. With this news I think they want to slash out Iran off their list as their next destination. Such a shame that everything is put on blame involving the crypto industry, its just like they are just putting lame excuses for the industry not to flourish in their side.

[fiulpro]

The real reason why government bans mining is because they are actually providing subsidy on the normal people using this , for the welfare of the society but instead of this they are using it for things that government doesn't approve of.

Instead if we could set up a personal renewable source of energy, this way one could avoid government confrontation and save environment too , it does need a lot of investment initially but for the long run it can help you set up even 10 mining machines.

[hosseinimr93]

I just have a question bothering my mind because of this news. Why is bitcoin mining to be blamed when power spikes? Why it should be it all the time whenever there is a power spike? I mean, 10 years ago, let's say that's when bitcoin mining also rises, why are they banning now?

That time they were ignoring bitcoin mining as they didn't expect a lot of people are attracted in bitcoin mining. Also, they didn't have knowledge about this. That's a big mistake they made.

[fortunecrypto]

Well this could be happening on many parts of the world that are not hitting the news yet, people in those kinds of countries like Hongkong, China and now Iran, because Bitcoin and other Cryptocurrency are a good stores of value compare to gold and dollar that are tangible.

[Naida_BR]

Authorities in Iran have seized roughly 1,000 Bitcoin mining machines from two former factories, according to state TV reports.

The action was taken following a spike in electricity consumption.

Demand for power rose by 7% in June and cryptocurrency mining was thought to be the main cause, an energy ministry spokesman told local state-run media.

One researcher said Bitcoin was gaining more and more attention in Iran as a potential means of storing wealth.

"Two of these bitcoin farms have been identified, with a consumption of one megawatt," Arash Navab, an electricity official, told state television.

https://www.bbc.com/news/technology-48799155

Can this confirmed that indeed Iran is already into bitcoin now as a hedge specially as fears of a total war with US?

I am not sure that this is confirmed.
Iran is already backed up by oil reserves if a war with the US will be escalated. I mean, they don't have any benefit of being into bitcoin as they won't make any harm to the US with that. It is positive news for our community if it is true thought, because it will bring more new investors and raise interest in bitcoin instantly.

[DdmrDdmr]

Iran electricity is subsidised in many scenarios, and apparently even free for mosques. The government is considering mining as an abuse of the subsidiary system, and allegedly a threat to the stability of the power grid (see See http://www.iran-daily.com/News/254817.html).

What’s behind is really in the line of:

Rajabi [spokesman of Iran’s Ministry of Energy] said until the prices are approved and implemented, the government would crack down on illegal consumption of energy for bitcoin mining.

It is a bit of a contradiction though, since power grid stability is being used as an excuse, whilst setting a price for electricity used by miners seems to be the core element really (control over them even more likely).

[Tipstar]

Iran has less buyers of it's oil so oil is dirt cheap there. They produce electricity from petroleum products and bitcoin and crypto are not only a source of income but also a way to avoid embargo as embargo are monitored through bank transactions. Iran should further encourage it's citizen to use crypto than to restrict it.