Categories: Bitcoin Business

Bitcoin Mining Hotspot Iran Drafts Electricity Tariffs for Crypto Miners

Click here to view original web page at www.ccn.com
Bitcoin mining is about to become mainstream and legal in Iran | Source: Lars Hagberg / AFP

The government of Iran has opted to introduce specific electricity prices for cryptocurrency mining. The west Asian country, which has had a complicated relationship with cryptocurrency in the past, plans to set prices around the same tariffs that are used for exporting electricity.

The government’s energy ministry deputy for power and electricity, Homayoon Ha’eri, announced the decision Sunday in remarks reported by Financial Tribune. The economic commission is now awaiting final approval from the wider cabinet. Although Ha’eri did not reveal the prices or rates, he did note that energy export prices can shift based on factors like fuel prices in the Persian Gulf region.

The move is a step toward greater legitimacy for cryptocurrency operations in Iran. The country has attracted miners with cheap electricity prices, but officials have warned about the strain on the national grid. With its own electricity tariff, cryptocurrency mining has been recognized by authorities.

Iran Could Be the Next Stop for Crypto Miners

Iran has become a popular destination for cryptocurrency miners in recent months. Attracted to cheap electricity, miners have been moving operations from China to Iran. It comes as the Chinese government places restrictions on cryptocurrency mining.

Iran gives big subsidies to electricity. In 2017, Iran spent around 10.4 percent of gross domestic product on subsidizing electricity. A study by Elite Fixtures found it costs $3,217 to mine one bitcoin in Iran, versus $3,172 in China and $4,758 in the United States.

Mohammed Sharqi, Managing Director of the Iran Blockchain Association, said in an interview earlier this month:

The Chinese have made requests through official channels for cryptocurrency mining in free zones.

One spokesperson from the energy industry claimed that Iran hosts over 148,000 mining machines.

A Mixed Relationship

Crypto miners are showing interest in Iran, and decentralized currency could help locals where global banking systems otherwise fall short. The government has expressed a mixed opinion on cryptocurrency, however. This is in part due to a seven percent surge in power usage last month. The surge was linked to bitcoin mining.

Last month, the authorities seized 1,000 bitcoin mining rigs in the Yazd province. The rigs, found in two abandoned factories, were using around one megawatt. The government’s energy ministry has accused bitcoin mining of making the energy grid unstable.

Iran Accuses US of Looking to Thwart Its Bitcoin Mining Operations https://t.co/3qEfCrtCpf

— CCN Markets (@CCNMarkets) July 7, 2019

The government has also, however, accused the United States of trying to block bitcoin mining in the country. The issues come after the United States lobbied to remove Iran from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network last November.

Iran also announced a gold-backed stablecoin earlier this year, known as Peyman, that includes the involvement of four banks.

While bitcoin mining has been accused of causing energy problems for the country, it seems cryptocurrency potentially offers a number of big benefits. Now that mining is set to receive its own tariff, it could help alleviate some of the concerns around miners taking advantage of rates intended for the general population.

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Late Hal Finney Predicted $10 Million Per BTC After Satoshi Release

Although some Bitcoin critics will spite anyone who believes that the cryptocurrency will be worth more than 1000× its current… Read More

4 hours ago

Bitcoin {BTC} adoption: Booking.com chief as well as U.K. Central Bank leader are optimistic about virtual currencies

Bitcoin is placed right at the top of the market, with the BTC dominance rate currently at 68.7%. The trading… Read More

4 hours ago

Top Pro Athletes Like Messi Would Make a Killing in Bitcoin Earnings

According to Messari research, Lionel Messi's take-home pay would be "12,700 $BTC" annually. Cristiano Ronaldo's would be 10,000 bitcoins. |… Read More

4 hours ago

House Financial Services Committee Will Continue Libra Review

Representative Maxine Waters, chair of the United States House of Representatives’ Financial Services Committee, says the committee will continue to… Read More

4 hours ago

Circle CEO Says Tokenized Fiat Currencies Are on the Horizon

Jeremy Allaire, the CEO of blockchain-based, crypto-inclusive money transfer company Circle, said that the firm has long held that major… Read More

4 hours ago

Devcon uses Ethereum platform to issue 150 tickets

Devcon5, the Ethereum Foundation’s fifth annual conference which takes place October 8-11 in Osaka, Japan, is using the Ethereum platform… Read More

4 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More