From June 22th, Iran will cut off the electricity of all the authorized cryptominers
Although cryptocurrency has many benefits for Iran, sanctions have forced the authorities to restrict the production to local farms to lower the load on the grid.
Image source: Vasilis Chatzopoulos/unsplash.com.
The 118 abyss bank will see their power consumption drop ahead of seasonal electricity consumption at the start of the year. This is because Iran uses bitcoins to circumvent the United States embargo, effectively excluding the country from international financial systems.
With important reservations, Iran has officially permitted mining on its territory in 2019. The licensee must pay more for electricity, and most importantly, all bitcoins mined must be sold to the bank. Iran has stopped operating farm farms in order to lower the cost of energy. This was especially true when energy consumption rose twice last year.
The country was very welcoming to the miners before this. Elliptic analysts claim that the state was responsible for 45% of global Bitcoin mining in May 2017. However, the figure dropped to 0.12% in January this year according to other estimates.
Miners in other countries must work secretly. China has banned cryptocurrency circulation in the country from July to August 2017. The total hash rate of China was 0%. However, the industry began to recover quickly. A survey by the Cambridge Institute of Alternative Finance, (CCAF), revealed that China accounted for 30 % of global hash rates in September 2021. In January however, this number rose to 30 % in the US.
Although cryptocurrency legalization in the Celestial Empire has not been achieved, underground miners are still using non-grid electricity sources as well as small crypto farms scattered throughout the country. Experts believe that miners who relied on their own VPN networks to explain the sharp drop and subsequent sharp rise were less afraid.
Yesterday, the Central Bank of Russia allowed legalization of cryptocurrency, but only for settlements outside Russia. The use of digital assets within Russia as a payment method is prohibited.