Iranian Government To Cut Power To Country's Legal Crypto Mining Platforms

[MARK21]

Iran's relationship with cryptocurrencies seemed to be moving forward in a positive way. Last year the Asian country issued licenses for crypto miners and formulated a bill to regulate digital currencies; now, it will restrict the energy of cryptocurrencies, this as a response to the energy crisis they are going through.

For years the country has heavily subsidized its electricity production, which has led to extremely low prices. He says this has now become unsustainable.

According to a report by Bloomberg, there will be 118 legal crypto mining centers that will be banned from energy from next June 22, before seasonal spikes in energy demand increase, said Mostafa Rajabi Mashhadi, spokesman for Iran's energy industry. , in an interview with state television.

Quoting via Twitter, Mashhadi stated:

"Last week, the country's electricity consumption recorded an all-time high of 62,500 megawatts (MW) during peak consumption, which is a significant figure. According to forecasts, this week's consumption requirement will exceed 63,000 MW, which means we must limit electricity supply ."

Source: https://cointelegraph.com/news/iranian-government-to-cut-power-supply-for-the-country-s-legal-crypto-mining-rigs

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[ImThour]

What matters the most is to find out how much % of the whole hashrate was coming from Iran. I would say 1% at max? And that's not going to affect Bitcoin price at all.
Surely it's bad news though however, the global impact of this news is not as much as you really think it is.

[edgycorner]

I think public energy is free in Iran, this is why it's a very good place for miners.
And they tend to cut the electricity of such legal miners almost every year when there's a strain on the grid(Which usually happens during summer).

I am sure there will still be illegal mining without any problem(and they are more in number compared to legal ones). As long as their OPSEC is good enough.

[fiulpro]

To be honest if the country is facing an energy crisis then they have to do it since this would allow more energy distribution at the same time the crypto mining farms uses a lot of energy, does not matter if they are legal or no, what the energy farms need to do is understand the fact that they might have a do or die situation here, some of the individual small farms will be wiped out for sure and they might not only have to merge but look for sustainable options for them for long term gains.

Also whatever they loose they are going to be compensated on the world market, it's good that it's not centered as well.

[The Cryptovator]

This isn't positive for crypto cut the power from legal miners that issued legal licenses. Although this will not have much effect on Bitcoin price or mining, if all the countries follow in this footsteps then we might in trouble. Really it's become a real challenge for the Bitcoin community to move to renewable energy. So we shouldn't depend on the centralized government energy resources. It's quite harassing for miners to move to other places suddenly.

[Fortify]

Iran's relationship with cryptocurrencies seemed to be moving forward in a positive way. Last year the Asian country issued licenses for crypto miners and formulated a bill to regulate digital currencies; now, it will restrict the energy of cryptocurrencies, this as a response to the energy crisis they are going through.

For years the country has heavily subsidized its electricity production, which has led to extremely low prices. He says this has now become unsustainable.

According to a report by Bloomberg, there will be 118 legal crypto mining centers that will be banned from energy from next June 22, before seasonal spikes in energy demand increase, said Mostafa Rajabi Mashhadi, spokesman for Iran's energy industry. , in an interview with state television.

Quoting via Twitter, Mashhadi stated:

"Last week, the country's electricity consumption recorded an all-time high of 62,500 megawatts (MW) during peak consumption, which is a significant figure. According to forecasts, this week's consumption requirement will exceed 63,000 MW, which means we must limit electricity supply ."

Source: https://cointelegraph.com/news/iranian-government-to-cut-power-supply-for-the-country-s-legal-crypto-mining-rigs

It shouldn't be a surprise to anyone as they've repeatedly cracked down on cryptocurrency miners in the past. They have a finite energy supply and are under a lot of pressure due to the long term sanctions against the country, so they are being rather resourceful with what they have available. In the peak summer months you can bet that the energy grid is under huge strain, as all those air conditioners add to the base load that is required. It eases off a bit in the winter months, when the energy supply can be freed up a bit and the miners are likely to be allowed back online. It's actually rather smart management and reduces the amount of waste at the expense of average consumers.

[Rruchi man]

According to a report by Bloomberg, there will be 118 legal crypto mining centers that will be banned from energy from next June 22,

If I properly understood the article, it says the government will cut supply of electricity to mining platforms, but it doesn't say that it will stop their activity. What this means to me is that the decision to continue will now depend on the miners. To continue their activities will mean that they may have to seek alternative sources of power, but if they can't, they will have to wait out the ban on supply of electricity to them which I think is a very unlikely choice. This is a setback that may reduce the number of miners in Iran, but it will not completely and immediately stop the activities of miners there especially the very determined ones.

 Accommodating 118 crypto mining platforms when some countries are still chasing miners around can be tasking, the government is going through a hard time, burdened with energy concerns, they are seeking ways to relieve themselves a bit, and temporarily this may just be it.

[pooya87]

this as a response to the energy crisis they are going through.

Not an energy crisis, just the possibility of a sudden spike in electricity usage due to heat season.

For years the country has heavily subsidized its electricity production, which has led to extremely low prices. He says this has now become unsustainable.

The problem isn't the low electricity price ($0.0018 per KWH) but the fact that usage has been increasing a lot faster than the capacity increase was. No matter how many fossil fuel power plants, nuclear power plants, renewable energy plants (hydro/wind/sun), etc. were built over the past year it could not keep up with the consumption increase.

What matters the most is to find out how much % of the whole hashrate was coming from Iran. I would say 1% at max?

Since there is no trusted stats were ever released we can't know that for sure. But last year I did a calculation based on the amount of bitcoin that was mined in Iran and the taxes that were paid with it and I came up with a percentage around 10% of the total hashrate. I don't have the stats for this year though.
That also doesn't account for home miners that are mining bitcoin at home without any license or taxes. This is only for mining farms with a license that have to pay tax.