Iran will lift the mining ban but electricity prices may rise. Are the miners happy or worried?9/8/2021 Iran issued a four-month temporary ban on cryptocurrency mining in May of this year. However, according to foreign media, the CEO of Iran’s power generation, distribution and transmission company Tavanir confirmed that the temporary ban will be lifted on September 22 , All miners who have obtained mining permission can resume mining.
It is understood that Iran recognized cryptocurrency mining as a legal industrial activity as early as July 2019, but mining companies must obtain relevant permits from the Ministry of Industry. The Ministry of Industry has also issued licenses to 30 mining companies, which has attracted a large number of miners from all over the world to Iran for mining. However, since January this year, more than ten provinces and cities in Iran have experienced large-scale power outages. In order to cope with the power shortage caused by the peak summer power consumption, the then Iranian President Hassan Rouhani announced the ban on encryption on May 26 this year. Currency mining. The main reason for aligning licensed miners with illegal mining miners is the surge in electricity consumption in mining. The daily electricity consumption of illegal mining miners is about 3000 megawatts of electricity, which is ten times that of licensed miners. Power outages in some areas have affected the daily lives of local people, causing many citizens to protest on the streets. The government had no choice but to issue a four-month ban to alleviate the current power shortage. Iran is located in West Asia and belongs to a Middle Eastern country. It has a land area of about 1.635 million square kilometers, about the size of Xinjiang. According to the 2019 population statistics, the total population of Iran is about 81.65 million, which is not as large as a Sichuan province in China, but the country is in the Middle East. Naturally, oil and natural gas resources are very abundant, and the economy is also dominated by oil exploration. Earlier, the price of electricity in the electricity market was very low and the supply was stable, which is also one of the reasons why it can attract miners everywhere. In September 2017, US President Donald Trump signed and promulgated the latest travel ban, and Iran was on his list. The economic sanctions imposed by the United States and other countries on Iran have always existed, which has caused its economic development to face difficulties in recent years, and it has been plagued by problems such as inflation and currency devaluation. According to reports, Iran’s inflation rates in 2018 and 2019 were 34.6% and 36.5%, respectively. Therefore, alternatives to fiat currencies such as the U.S. dollar are very attractive to Iran's authority, and the Iranian people also hope that there will be another store of value to fight inflation. According to the Cambridge Computing Power Map, before Iran’s ban, Iran accounted for 4.64% of the global Bitcoin mining power, which allowed the Iranian government to earn hundreds of millions of dollars from cryptocurrencies, which could be used to ease the US economy. The impact of sanctions. According to people familiar with the matter, even if the ban is over, it will not be easy for mines to restore their previous profitability, because Iran has put forward harsh new regulations: not only the electricity price will be increased sharply, but also all legal mining companies are required to deposit a one-time deposit. Electricity bill for 6 months. In addition, the electric power department requires that the mines must pre-store the electricity bills before September 7, otherwise the electricity will not be able to be normally powered on on September 22. It is estimated that the electricity price after mining resumes will reach 0.55 yuan per kilowatt-hour. If the relevant policies on electricity tariff regulation are officially promulgated, plus the recovery of mining but the total amount of power generation has not increased, it is still unclear whether the electricity consumption is stable, plus tax and mine operating costs, it is for those who are fancy low electricity prices and loose For miners who want to move to Iran, Iran may no longer be the best choice.
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