Transfer of Chinese miners to Iran

[mr_ROBOTT]

The sudden decline in bitcoin mining power in China prompted me to research this and came up with some interesting things. Iran and China have a long-term contract to mining bitcoins.

https://www.radiofarda.com/a/chinese-presence-iran-bitcoin-mining/31041888.html

According to the above reports, the Chinese are engaged in this activity, which requires high electricity consumption, by creating and expanding a digital currency mining farm in Rafsanjan.



With the lighting of these devices, the Iranian people have faced severe electricity shortages and many pollutions are observed in Iranian cities.
In an interview with Tejaratnews, Mohammad Reza Sharafi, a member of the Iranian Blockchain Association, asked, "If a foreign investor can be present in the country, why are there various obstacles that our own people cannot enter the field of cryptocurrency mining?"

[bitmover]

I really dont think mining operations would move to Iran.

China has cheap hardware to sell, and they also have the biggest hydroelectric power plants in the world, which means one of the cheapest energy in the world

.iran has power shortages as you mentioned, ofc the energy is not cheap, as it is scarce.  Also, hardware are not cheap there...

[avikz]

Does Iran has access to cheap electricity? I mean if their electricity production is run by fossil fuel, then definitely it will be cheap because Iran us sitting on a rich deposit of petroleum. But otherwise, it will be costlier than many other countries.

Also I wonder why Chinese people will choose Itan when the Chinese government is not at all friendly to the Muslims in their own country. Seems very contradictory to me!

[mr_ROBOTT]

I really dont think mining operations would move to Iran.

China has cheap hardware to sell, and they also have the biggest hydroelectric power plants in the world, which means one of the cheapest energy in the world

.iran has power shortages as you mentioned, ofc the energy is not cheap, as it is scarce.  Also, hardware are not cheap there...

I might point out that electricity is scarce for ordinary people.
Every year, Iran exports its electricity to neighboring countries such as Iraq and Pakistan, and I must point out that Iran is one of the top countries in the field of nuclear energy, which means only one thing:
Production of industrial electricity with a very, very large volume.

[mr_ROBOTT]

Does Iran has access to cheap electricity? I mean if their electricity production is run by fossil fuel, then definitely it will be cheap because Iran us sitting on a rich deposit of petroleum. But otherwise, it will be costlier than many other countries.

Also I wonder why Chinese people will choose Itan when the Chinese government is not at all friendly to the Muslims in their own country. Seems very contradictory to me!

Iran does not have a problem with industrial power shortages and, as you mentioned, Iran uses fossil fuels.
Also, China is not like other countries, and when it comes to the economy, China separates religion from politics. And not only has it rented electricity from Iran, but in recent news it has been mentioned that China has an independent island from Iran.
This is a vague agreement and its full details are not disclosed by either government

[Ucy]

The sudden decline in bitcoin mining power in China prompted me to research this and came up with some interesting things. Iran and China have a long-term contract to mining bitcoins.

https://www.radiofarda.com/a/chinese-presence-iran-bitcoin-mining/31041888.html

According to the above reports, the Chinese are engaged in this activity, which requires high electricity consumption, by creating and expanding a digital currency mining farm in Rafsanjan.



With the lighting of these devices, the Iranian people have faced severe electricity shortages and many pollutions are observed in Iranian cities.
In an interview with Tejaratnews, Mohammad Reza Sharafi, a member of the Iranian Blockchain Association, asked, "If a foreign investor can be present in the country, why are there various obstacles that our own people cannot enter the field of cryptocurrency mining?"

Assuming you stop concentrating the miners at one or few locations, and rather distribute them to thousands of people across the world, you wouldn't be weighing down on nations power grids and Miners will share profit by mining together. We are using traditional economic/business model that encourages centralization rather than stick to Bitcoin/crypto model to encourage decentralization of mining.

*The screenshot post doesn't look complete. I guess it's a continuation of a main post and can't be properly understood in isolation.

[masterrex]

I think Iran and China are friends so there's no problem with it. Anyway, the bitcoin mining process is a voracious power consumer, But luckily Iran has an ample supply of industrial electricity that's why it is not a problem with them, Iran uses both Fossil fuels and Nuclear energy for their power plants so it is not an issue to allocate that 175 MW of output in the so-called Bitcoin mining farms. but when it comes to the cost of hardware I think that It has a small problem since it needs to import the mining machines from China with an additional cost.

[franky1]

alot of people think of iran based on the news reports..
when they see iran they think



but the reality is. iran actually looks more like


iran also has electric at just 1 cent/kwh
so even if you then need to pay for ventilation. is only ~2cent/kwh

..
but yes if you live in the most remotest part of the country. youe electric is going to be spotty.
bu thats the same for australia and america

many american hillbillies still dont have  constant power supply

[mr_ROBOTT]

Assuming you stop concentrating the miners at one or few locations, and rather distribute them to thousands of people across the world, you wouldn't be weighing down on nations power grids and Miners will share profit by mining together. We are using traditional economic/business model that encourages centralization rather than stick to Bitcoin/crypto model to encourage decentralization of mining.

*The screenshot post doesn't look complete. I guess it's a continuation of a main post and can't be properly understood in isolation.

This is a complete photo of Massoud Nouri's speech:

https://tinyurl.com/5f2nuxf5


As we can see, this is a complete post and they use low electricity tariffs.

[James_minerbrother]

Long time no Iran client now, not the power shortage, but it's very difficult custom clearance that you bring miner into that country, trust me, ignore that thought of moving miner to Iran.

[NotATether]

iran has power shortages as you mentioned, ofc the energy is not cheap, as it is scarce.  Also, hardware are not cheap there...

Bolded part is almost always the deal breaker.

Most African and middle eastern countries have regular cycles where power in various districts is shut off. If you are lucky some do it for a few minutes, but most of them leave it off for hours at a time, so UPSs are a must in these places or lots of your gear will be fried.

The power shortages will also cause mining profits to be very volatile as they cannot be known in advance.

And no in most cases you CANNOT negotiate with them to regulate your power delivery unless you are a very large client, so you either got to spend more money on generators (which are plentiful around these parts) or risk losing out on money by shutting off the whole farm.

Iran actually sells oil to china so I'm not sure where you got the idea of energy being scarce from, although in most of these countries electricity is sold for cheap by virtue of being priced in foreign money (for example I vaguely recall buying bulk Sudanese electricity at 0.028cents/kwh), but you're going to have trouble finding mains inputs large enough for a mining farm that also aren't faulty (I know for a fact some engineers design very bad outlets).

Nobody buys hardware in sanctioned countries, they import it from places like Hong Kong/China because it's better quality. It also lets you bulk-buy hardware which is cheaper than buying whole units from local stores, which are also imported.

[stompix]

China has cheap hardware to sell, and they also have the biggest hydroelectric power plants in the world, which means one of the cheapest energy in the world
.iran has power shortages as you mentioned, ofc the energy is not cheap, as it is scarce.  Also, hardware are not cheap there...

We saw a coal mine accident and a 30% drop in hashrate, so I think that we should stop with the hydropower stuff by now
That happens only in the rainy season and it's available just for a few miners, the largest chunk of them is still running on coal as both coal and gas are damn cheap.

This move (which I don't think it's actually happening) would indeed make sense if we're talking about gas-powered electricity.
Iran is a gas producer, and you can't actually store that much gas, it's quite expensive so it makes sense economically to sell it in form of energy if there is demand rather than seeing it go to waste, especially when you're Iran and you're under sanction and you have zero pipelines leading to any major buyer with storing capacity as Russia has. You can't actually shut down gas wells in an economically feasible way when there is no demand so rather burn it for power and then, try to sell power if you can't sell gas.

But as far as business relation and long term prospect, probably that would not be the best choice, I would reallocate faster to Russia or any of the former Soviet states that have oil and gas, like kazakhstan or the Arab countries. With this type regime is pretty hard to anticipate what will they think 2 years from now!

[franky1]

"If a foreign investor can be present in the country, why are there various obstacles that our own people cannot enter the field of cryptocurrency mining?"

the answer is simple.
the 'investor' uses the industrial capacity. that can actually cope with high MW electric.
home hobbiests in iran will not get 3.25kw from their house wallsocket. so need to fiddle with their circuit breaker.
these things cause neighbourhood power cuts as its too much for residential capacitors

imagine a street of 10 houses. each with a 4kw capacitor. but each house only uses say 1kwh
the street can supply 40kwh but is only utilising ~10 normally

suddenly turning on just one s19 makes that street need to suddenly demand a 14kwh supply. which if the network is not set up means there can be some brownouts (dimming lights)
if the residential hobby miner has more asics running. it can get worse.
if there was someone with say 9 asics (29.25kwh) then if one of the houses suddenly wanted to boil some water whilst watching tv. that puts the whole street over the 40kwh limit for their usual household and asic draw.. causing a circuit break.. aka power outage

home users fiddling with their circuits to get more then 4kwh from within their property can cause issues not just for themselves. but their neighbours too

[asiabtc]

good chance for iran people to joig mining.
china will shut down all mining farm.

[mikeywith]

It's funny how everybody thinks the drop in hashrate has anything to do with the "China banning bitcoin" fud that has been going on since 2017, yet, you chose to ignore the fact that mining this epoch is 50% less profitable than the previous one. if BTC goes back to the 50-60 range we will start seeing new ATH in terms of the total hashrate, so no, the Chinese are not going to stop mining bitcoin, all the news you read is FAKE, in fact, it's more likely than not that the majority of hashrate drop came from countries other than China.

[Shymaa-Arafat]

you chose to ignore the fact that mining this epoch is 50% less profitable than the previous one

I'm not a miner, but u r ignoring the fact that Btc price is almost double or even triple it's price in the previous epoch

[mikeywith]

I'm not a miner, but u r ignoring the fact that Btc price is almost double or even triple it's price in the previous epoch

Are you for real? how is that correct? you either don't know what difficulty epoch is or you are looking at the wrong price chart.

[Daltonik]

Iran has imposed a ban on cryptocurrency mining until September, the Iran Front Page news agency reports, citing a statement by President Hassan Rouhani: "Authorized cryptocurrency mining does not consume much electricity and requires only about 300 MW. However, a lot of electricity is consumed by unauthorized miners. They account for about 2000 MW. From today, a ban on the mining of cryptocurrencies even for authorized miners comes into force»  https://ifpnews.com/iran-bans-cryptocurrency-mining-until-late-september

[SoeNan89]

Many people are disappointed with the "China ban bitcoin" chinese fud which has been going on since 2017, they thought the bitcoin price drop yesterday was caused by this incident however, you choose to ignore the fact that mining these days is 50% less profitable than before.

 if BTC returns to the range of 70 then all coins will disappear in price and at that time many people are disappointed and do not dare to buy coins.  So don't be fooled by the fake news that's circulating.

[btc-room101]

I really dont think mining operations would move to Iran.

China has cheap hardware to sell, and they also have the biggest hydroelectric power plants in the world, which means one of the cheapest energy in the world

.iran has power shortages as you mentioned, ofc the energy is not cheap, as it is scarce.  Also, hardware are not cheap there...

In the past five years there is an enormous water shortage in ASIA, not unlike what you have western usa, this is why the miners moved to coal burning areas.

The rivers in China have been dry for years.