Bitcoin ($BTC) News: Iran Bans Cryptocurrency Mining on Shortages of Power. The ban is effective immediately and will last until Sept. 22, President Hassan Rouhani said on state TV on Wednesday.
Above all, Iran banned the power-intensive mining of cryptocurrencies like Bitcoin forward of its peak electrical energy demand season, after hovering consumption contributed to blackouts in main cities.
Bitcoin ($BTC) News: Iran Bans Cryptocurrency
DUBAI, United Arab Emirates — Iran’s government announced a ban on mining bitcoin and other cryptocurrencies. The country’s president, Hassan Rouhani, announced Wednesday, as officials blame the energy-intensive process for blackouts several Iranian cities.
In January, Iranian police confiscated nearly 50,000 bitcoin mining machines that were using subsidized electricity illegally. The miners had been consuming 95 megawatts per hour at cheap state-subsidized rates, according to Iran’s state-run power company Tavanir.
Iran’s government says that 85% of bitcoin mining in the country is happening illegally. The country of 82 million is home to 50 licensed mining farms. By and large, which uses a total of 209 megawatts of power, Tavanir said Wednesday.
Firstly, The cryptocurrency, which hit record high prices in April, above $63,000 per coin. Secondly, It has come under fire of late for the energy-intensiveness behind its production and its consequent environmental cost.
The transfer might threaten to push the licensed minority into the black market in a word, which authorities have additionally been attempting to crack down on, even enlisting spies to find unlawful miners who cover computer systems in all places from homes to mosques.
Iran among top 10 bitcoin mining countries
Bitcoin and other cryptocurrencies are created through a process known as mining. Where powerful computers compete with each other to solve complex mathematical problems. The process is highly energy-intensive, often relying on fossil fuels, which Iran is rich in.
Tehran allows cryptocurrencies mined in Iran to pay for imports of goods. That can help it get around the wide-ranging U.S. sanctions imposed on the country by the Trump administration. According to Iranians living in the country, Iran’s central bank forbids trading cryptocurrencies mined abroad, though these can be found on the black market.
Around 4.5% of all bitcoin mining globally took place in Iran between January and April of this year, according to blockchain analytics firm Elliptic. That put it among the top 10 in the world, while China came in first place at nearly 70%
Firstly, officers blame the crypto rush, elevated manufacturing, and a drought. That reduces the hydroelectricity era for blackouts taking part in havoc with companies and everyday life in Iran.
The bottom line
In recent years, Iran has accepted crypto mining, offering cheap power and requiring miners to sell their bitcoins to the central bank. Secondly, Tehran allows cryptocurrencies mined in Iran to be used to pay for imports of authorized goods.
The prospect of cheap power has attracted miners, particularly from China, to Iran. Above all, According to Elliptic, generating the electricity they use requires the equivalent of around 10 million barrels of crude oil a year or 4% of total Iranian oil exports in 2020.