Over 100 Licenced Crypto Miners in Iran to be Cut off from the Grid on June 22
- Electricity demand in Iran hit a record high last year, exceeding 67,000 megawatts in August.
During an interview with a stave TV Mostafa Rajabi Mashhadi, spokesman for Iran’s power industry said 118 legal crypto mining centers in Iran will cease to operate from June 22. This is likely to exacerbate the crypto sell-off that has been sustained in the past few months.
Mashhadi said that the cut comes amidst an anticipated seasonal power demand.
“Country should brace for power shortages as demand is projected to surpass 63,000 megawatts this week,” Mashhadi said.
Iran and the Cryptocurrency Mining Industry
Iran has been a major cryptocurrency mining hub for the past few years. The country has appeared in the top ten countries that have been mining crypto assets for several years.
Nevertheless, the crypto market cap is currently down over 60 percent from its ATH. A lot of cash has been liquidated, thereby making it less profitable than in prior years.
However, market pundits have called it the crypto winter, meant to eliminate floater companies. Iranians have taken advantage of the crypto mining industry, hence the rising electricity demand.
Notably, electricity demand in Iran hit a record high last year, exceeding 67,000 megawatts in August. Then, the cryptocurrency market cap oscillated around $2 trillion after hitting an ATH of $3 trillion.
The proof-of-work was one of the core issues that Satoshi raised in the Bitcoin whitepaper. However, regulators around the world are debating the effects of the Proof-of-work concept on the environment.
With increased global regulations on proof- of -work concept, most digital assets are migrating to another consensus, including proof-of-stake. For instance, Ethereum is transitioning to PoS from PoW via the Merge event.
Nonetheless, Bitcoin, which is the oldest and the largest digital asset, is yet to adopt a similar concept. In fact, the debate has moved to renewable energy in crypto mining.
The Bigger Picture
The cryptocurrency market has played a critical role during the past two years of the Covid crisis. Bitcoin has grown from a speculation asset to legal tender in El Salvador and the Central African Republic. Thereby raising the demand and utility of the digital assets.
Iran’s power grid disconnection to licensed crypto miners may not make a huge impact. Moreover, a lot of investments have been channeled towards the crypto mining industry by institutional investors.
Additionally, geothermal energy among other renewable sources is more popular with crypto miners.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
