Iran Bans Bitcoin Mining, Reasons Explained

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The cryptocurrency market was experiencing golden times for the past few years, but the picture has changed in recent months. Last week, this market had faced earthquake conditions. The biggest reason for this was China’s ban on cryptocurrency transactions and services. Now the latest news has come that Iran’s President Hassan Rouhani has banned the mining of cryptocurrencies like bitcoin for almost 4 months due to their excessive energy consumption. In the latest report of the news agency, it has been told that many cities of Iran are currently facing power crisis and this is the reason behind this ban.

On Wednesday, Iran’s President Hassan Rouhani released a televised speech while holding a cabinet meeting, saying (translated) “Ban on the mining of cryptocurrencies until 22 September,” a latest report from Reuters news agency said. Effective … about 85 percent of the current mining in Iran is unlicensed.” Mining of Bitcoin uses a lot of energy and similarly mining of some other cryptocurrencies also uses a lot of energy. In mining, powerful computers compete with each other to solve complex mathematical problems. Very powerful graphics cards are used in these computers. To power them, it often requires electricity made from fossil fuels, in which Iran is very rich.

The report says that Iran is currently facing the problem of electricity and there is a situation of blackout in many major cities of the country, due to which people are criticizing the President. Not only this, the presidential election is also due in Iran next month, so the government has banned mining, blaming cryptocurrency mining for the power cuts.

The report further cites blockchain analytics firm Eliptic as stating that about 4.5 percent of bitcoin mining takes place in Iran. Iran had embraced crypto mining in recent years and allowed miners to sell their bitcoins to the central bank along with cheap electricity.

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