Fun

Iran Finds Scapegoat In ‘Easy Victim’ Bitcoin as Officials Shut Down 1,600 Mining Farms

News Feed - 2021-01-27 06:01:10

Iran Finds Scapegoat In "Easy Victim" Bitcoin as Officials Shut Down 1,600 Mining Farms


As Iran experiences rolling electricity blackouts, the country’s authorities have responded to the crisis by targeting bitcoin mining farms. The sanctions-hit country’s campaign against miners has seen a total of 1,600 mining centers being shut down. This Iranian blitz on cryptocurrency miners, however, appears to contradict the country’s previous policies towards cryptocurrency mining. The Real Cost of Electricity in Iran


According to a report, the Islamic Republic has previously “authorized 24 bitcoin processing centers that consume an estimated 300 megawatts of energy.” Furthermore, Iran’s “electricity cost of around 4 cents per kilowatt-hour,” as well as the tax-free zones in the south, helped to attract “tech-savvy Chinese entrepreneurs.”


Still, the report explains that other elements inside the Iranian government are more concerned with “how much money is sent abroad and controlling money laundering.” Across the country, bitcoin is used by business people and individuals to bypass the United States’ “banking sanctions that have crippled the economy.”


Although Iran’s electricity costs are more competitive relative to those of its peers, the report, however, suggests that the country’s bitcoin miners have a different view. As Mohammad Reza Sharafi, the head of the country’s Cryptocurrency Farms Association hints, Iran’s electricity costs are not viable. He suggests that they in fact could be “discouraging investment.”


The report quotes Sharafi stating: Activities in the (bitcoin mining) field are not feasible because of electricity tariffs.


In explaining this contention that Iran’s electricity tariffs are high, Sharafi reveals that from permits that were given to 1000 investors, “only a couple dozen server farms are active.” The rest of the miners seem to be put off by the fact that the power tariffs they face are five times more than those of “steel mills and other industries that consume far more power.” Decades of Mismanagement


In the meantime, the same report also elicited comments from Kaveh Madani, the former deputy head of Iran’s Department of Environment. Madani is quoted disputing the narrative that bitcoin mining activities consume excessive power. According to him, while “bitcoin is an easy victim” the real cause of the shortages seems to be the “decades of mismanagement”, which led to the “growing gap between Iran’s energy supply and demand.”


Also undercutting the Iranian government’s claim that bitcoin is consuming too much electricity is an estimate by its own telecommunications ministry. According to this ministry, bitcoin’s share of Iran’s total energy production is just 2%.


Do you agree that bitcoin mining in Iran is the cause of electricity shortages? Tell us what you think in the comments section below. Marathon Patent Group Buys $150 Million Worth of Bitcoin as a Reserve Asset MINING | 2 days ago While BTC"s Hashrate Remains High, It"s More Difficult Than Ever Before to Mine Bitcoin MINING | 2 days ago Tags in this story banking sanctions, bitcoin mining farms, cheap electricity, Cryptocurrency Farms Association, iran bitcoin miners, Iranian economy, Kilowatt, Money Laundering, ohammad Reza Sharafi, US sanctions


Image Credits: Shutterstock, Pixabay, Wiki Commons Spot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Bitcoin.com Wallet Adds DApp Gateway WalletConnect
Bitcoin.com Wallet Adds DApp Gateway WalletConnect TheBitcoin.comTeam is excited to announce support for Ethereum-basedDAppsin theBitcoin.comWallet via WalletConnect. Earn interest
Earnfinance Is a Powerful DeFi Platform for Staking, Farming and Borrowing – YFE Presale Is Live
Earnfinance Is a Powerful DeFi Platform for Staking, Farming and Borrowing - YFE Presale Is Live PRESS RELEASE. What is yield farming? Yield farming, also referr
UK’s Standard Chartered to Offer Crypto Brokerage Services in Ireland
UK’s Standard Chartered to Offer Crypto Brokerage Services in Ireland British bank Standard Chartered will offer cryptocurrency broker services in Ireland thro
How DePin Networks can decentralize law enforcement
Vince Quill5 hours agoHow DePin Networks can decentralize law enforcementEverything from radar arrays to acoustic networks that triangulate active shooters can be decentralized and community-owned.1504 Total views1 Total
Crypto hackers buy Ethereum dip using stolen funds
Arijit Sarkar1 hour agoCrypto hackers buy Ethereum dip using stolen fundsHackers exploit the market crash, using stolen funds from the 2022 Nomad bridge hack to purchase 16,892 ETH at a significant discount.3436 Total vi
Biden Administration Lowballs Inflation Predictions, Report Says Americans Are ‘Fixated’ on Dollar Value
Biden Administration Lowballs Inflation Predictions, Report Says Americans Are "Fixated" on Dollar Value As inflation continues to wreak havoc on American wallets, the U.S. dollar&
Bitcoin, Ethereum Technical Analysis: BTC Hits $27,000, Securing Fresh 9-Month High
Bitcoin, Ethereum Technical Analysis: BTC Hits $27,000, Securing Fresh 9-Month High Bitcoin moved to a fresh nine-month high on Friday, as prices moved above the $27,000 level. The
Dogecoin Is ‘Ready To Run Again’ – Analyst Expects 60% Rally
Este artículo también está disponible en español. Dogecoin has entered a consolidation phase, holding below its recent local high of $0.48. Despite showing signs of bulli
Vitalik Buterin moves $8M Ether to new wallet — Possible donation ahead?
Zoltan Vardai24 minutes agoVitalik Buterin moves $8M Ether to new wallet — Possible donation ahead?The Ethereum co-founder has a history of making multimillion-dollar cryptocurrency donations.217 Total viewsListen to a
FreeTON Unveils TON Swap 2.0
FreeTON Unveils TON Swap 2.0 sponsored Broxus, a leading developer of the FreeTON project, has unveiled the second version of their FreeTON DEX, TON Swap. The upd
Marathon Expands Miner Deployment Deal With Compute North, Aims to Power 100K+ Miners With Renewables
Marathon Expands Miner Deployment Deal With Compute North, Aims to Power 100K+ Miners With Renewables Marathon Digital Holdings, a Nasdaq-listed bitcoin mining-based company, has a
Blockchain Tops the List of Most In-Demand Tech Skills for 2020
Blockchain Tops the List of Most In-Demand Tech Skills for 2020 If you are planning to start a new career this year, or just improve your value in the jobs market, the best thing