Iran has restricted cryptocurrency miners until the end of September
Iran President Hassan Rouhani, when announcing the new decision of the authorities, did not focus on bitcoin mining.
High electricity consumption for mining cryptocurrencies is the main reason for the decision made by the Iranian government to limit the work of miners of digital assets until the end of September this year. The country’s president, Hassan Rouhani, stated that:
“Allowed cryptocurrency mining does not consume much electricity and only needs about 300 mW of capacity. However, there are those cryptocurrency miners who have not received the appropriate permission for their activities, and their activities involve the consumption of a large amount of electricity, as a result, they consume about 2 thousand mW.”
It is noteworthy that the Iranian president did not focus on bitcoin mining, although it is certainly very much about mining the No. 1 cryptocurrency. At the same time, Tehran’s decision will have little impact on the global bitcoin mining industry, given that Iran only accounts for about 4.5% of the total bitcoin hashrate.
At the same time, the growth dynamics of hashrate attributable to Iran has been positive over the past 12 months (in May 2020, the country’s share of bitcoin mining was 3.81%), but now this figure will decrease.
Recent news from China, which collectively accounts for about 65% of bitcoin hashrate, could also suggest a decline, meaning that the cryptocurrency’s No. 1 mining industry is in the midst of a transformation that has intensified since the next bitcoin halving in 2020. Galaxy Digital’s research arm, Galaxy Digital Research, believes that Kazakhstan, Russia, Pakistan, Canada and the United States will increase their share of bitcoin mining in the foreseeable future.