Authorized Mining of Cryptocurrencies Halted by Iran to Save Energy

Cryptocurrency News

In the past couple of years, many countries from around the world have adopted crypto-mining technology. There was a time when only a few countries such as China, Russia, South Korea, and the United States did cryptocurrency mining.

In recent years, countries such as Venezuela, El Salvador, Pakistan, and even Iran have adopted cryptocurrency mining. The major reason why these countries have adopted crypto-mining is to boost their economies and increase their GDPs.

This is the reason why the mining sector for cryptocurrencies has been expanding throughout the globe lately. Among countries adopting crypto-mining as a major economy booster, it is Iran that is doing it on a larger scale than the rest.

From the beginning of 2020 until the end of the first quarter of 2021, Iran was taking damage due to unauthorized crypto-mining activities. Due to that, the country ended up facing a huge electricity crisis. However, the regulators were fast to react to the problem and dealt with it very swiftly.

Until now, the country has brought cryptocurrency mining into their control and as of now, only authorized crypto-mining activities are allowed in the country.

However, the sanctions imposed by the US over Iran still have the country cornered. This is because not many countries are willing to work with Iran or establish their trades with the country due to the US pressure.

With the gas reserves depleting, Iran is forced to limit cryptocurrency mining. Due to a limited amount of energy, the country has to micromanage mining operations in order to make sure it has enough power for the locals.

Therefore, the country tends to halt mining activities when it is about to face an energy crisis. As the winter is getting fierce almost throughout the globe, Iran is also getting ready to increase its energy reserves.

During extreme winters, a very large volume of energy is consumed in Iran for heating, and keeping the buildings warm. Taking the situation into consideration, the Iranian Government has already started halting mining operations in the country.

The news from the local media sources reveals that Iran had already started halting mining operations starting November. However, as the electricity consumption increases, the country has completely halted the mining operations in the country.

According to data from on-chain platforms, Iran is currently responsible for mining up to 7% of the world’s total cryptocurrencies. It is expected that Iran may increase its energy sources in the upcoming years and its contribution to the crypto-mining sector may also surge.

The local mining firms in Iran are well aware of the situation and they know that the halt on the mining operations is temporary. Due to the halt, the price of cryptocurrencies, as well as the mining hashrate, may also experience a dip, which may reflect on the general crypto-markets.

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