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Cryptocurrency mining may be a great way to introduce new digital coins and tokens into circulation, but it still remains very resource-heavy, which causes problems for countries that do not have enough power in their reserves. While China has more than enough electricity to supply miners, countries like Iran do not.
The shutdown of crypto mining farms and centers will help ease the strain on the country’s power plants during the winter. With the power required for heating purposes, Iran had to resort to drastic measures in order to avoid blackouts, and that meant a second crypto mining ban this year.
The new developments were shared yesterday by the director of the state-run Iran Grid Management Co., Mostafa Rajabi Mashhadi.
The ban will stay in place until March 6, 2022. But, because of it, the country will be able to free up 209 megawatts of power, which will now be directed to the household sector. Of course, there are still cases of personal crypto mining carried out by individuals, as well as larger operations that are not registered with the country’s authorities. Both of these are illegal in Iran, and the authorities are working around the clock to crack down on them, especially now when saving power and making it available during winter months is crucial.
The unlicensed operators actually account for the largest share of the crypto mining within Iran; and while the country was able to free up 209 megawatts by shutting down registered miners, another 600 megawatts is being used up by the illegal ones throughout Iran.
While the government is shutting down miners throughout the country, there are other efforts being made to save electricity. Some of the other measures include shutting off street lights, as well as regulating electricity consumption in offices.
One of the reasons why the country had to resort to these measures–this summer was a lot less productive when it came to generating electricity than expected. In fact, according to Rajabi Mashhadi, the authorities expected 60% more power than what was actually produced.
This is the second time this year that Iran is banning mining, with the first time happening earlier this year, after a series of blackouts across major cities. This was blamed on the surge in the energy-intensive process following China’s crackdown on miners, which caused most of them to leave the country and move elsewhere. With the gaping hole in the mining community, many in Iran saw the opportunity to mine coins and make a profit, resulting in a surge of interest throughout the country.