More bad news for bitcoin: Iran bans cryptocurrency mining for 4 months
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The energy cost of mining cryptocurrencies is excessive and Iran has banned it for a few months.
They say that bad news never comes alone and the streak that bitcoin is suffering comes to prove it. In recent weeks it has received a series of blows that have caused a significant loss in its value, and as a consequence also in that of other cryptocurrencies , and now another news has arrived from Iran that affects its production.
In recent weeks we have seen that Tesla stopped allowing the purchase of its cars with bitcoins due to the environmental cost of mining that cryptocurrency, then China put a series of restrictions on it and now Iran has prohibited mining of that cryptocurrency for four months. cryptocurrencies because of the electricity consumption that it entails.
Reuters has published this news and to understand it fully, it is necessary to know that the Iranian electricity grid is one of the cheapest that exists as it is subsidized by the State , which has caused the proliferation of mining farms.
Such is the impact of cryptocurrency mining in Iran that it is causing occasional power outages and there is concern about what it may mean by adding to the increased consumption that takes place in summer by citizens.
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In order to solve it, Hassan Rouhani, president of the Islamic Republic of Iran, has announced that he prohibits any mining from now until September 22 .
It is a severe blow for the cryptocurrency as it is estimated that about 4.5% of bitcoins are mined in Iran . This aspect is also a boost to the country’s economy, according to some media, although Rouhani affirms that about ” 85% of current mining in Iran is not licensed . ” As with other issues in this country, it is difficult to know for sure the real numbers.
The use (and production) of cryptocurrencies requires large data centers that have high energy consumption at all times. We analyze where these centers are and the damage they can cause to the environment.
Ultimately, whether for ecological, mistrust, political or supply reasons, the problems that bitcoin has been facing in recent months seem to have worsened. We will see what consequences all this has in the cryptocurrency, although it is better not to bet in any specific direction given its volatility. More bad news for bitcoin: Iran bans cryptocurrency mining for 4 months
