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 he is receiving 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 come from Iran affecting 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 banned cryptocurrency mining for four months because of electricity consumption that it entails.
Reuters has published this news and to fully understand it you have to know that the Iranian electricity grid is one of the cheapest in existence 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 is causing occasional power outages and there is concern about what it may mean when adding to the greater consumption that takes place in summer by citizens.
In order to solve it, Hassan Rouhani, president of the Islamic Republic of Iran, has announced that prohibits any mining from now until September 22.
It is a hard blow for the cryptocurrency as it is estimated that about 4.5% of bitcoins are mined in Iran. This aspect also supposes a boost to the country’s economy, according to some media, although Rouhani affirms that on the “85% of current mining in Iran is unlicensed“. As with other issues in this country, it is difficult to know for sure the real numbers.
In short, be it for ecological, mistrust, political or sourcing reasons, the problems bitcoin faces in recent months they 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.