Crypto Mining Hasn’t Found Economic Sense by the Iranian Government Yet

Last Modified:30 Jun 2019 07:01:04
Crypto Mining Hasn’t Found Economic Sense by the Iranian Government Yet

According to a report by local news agency Iran daily on June 21, 2019, Iran will not provide the power necessary for mining cryptocurrencies anymore. This decision made by Iranian statesmen might be the result of spike of electricity consumption that besides the problem in the electricity grid, faced the other users with problems too.

This 7% spike, according to Mostafa Rajabi Mashhadi, an official at Iran’s ministry of energy, refers to a one-month period from May to June. Due to its different nature comparing to previous cases observed before, he believes, it is the main reason of instability in the power grid.

Apparently, the first hunch by the officials was increasing the rate of crypto mining activities as a result of the cryptocurrencies’ prevalence in this Asian country. This very event has made them determined in offering a solution to avoid consuming energy in this regard.

They have decided to find every crypto miner and cut its electricity off; although it might be a transient decision since the ministry of energy is working on an alternative for these miners to specify a different charge; i.e. in accordance to real prices in Iran which is actually the power export rate for them. In case it is accepted by the government the process of their activity will be continued. Before these urgent decisions, mining activity had been a source of income for some Iranians even during the bear market the cryptocurrencies have experienced in 2018.

Interestingly, Iran is not against crypto mining and accepts it an industry; some of effective authorities including Ministry of Information and Communications Technology, the central bank and the Ministry of Energy have included this industry since September, 2018.