Iran Bans Cryptocurrency Mining Due to Countrywide Electricity Outage

Crypto mining is a popular activity in the digital sector nowadays. Users want to utilize the process of obtaining new digital coins to earn returns and the available incentives. You probably know how lucrative the crypto market is at the moment. Unfortunately, every good thing has its drawbacks. The only challenge with mining crypto is the high amount of energy needed. Different nations expressed their interest in energy consumption by crypto activities like BTC mining.

Recently, Iran deployed a temporary ban on the crypto mining undertakings resulting in power outages. The nation decided to suspend mining activities for 4 months. Moreover, all cryptocurrency operations in the country have to break off. That is according to an announcement by President Hassan Rouhan yesterday- May 26.

Legal crypto mining activities in Iran account for around 300 MW of power. On the other hand, unauthorized mines use about 2,000 MW. For that reason, the nation concludes that Crypto mining is the reason behind the dark streets, thus the temporary ban. The regulators prioritize power supply to hospitals and residential areas since the nation’s power grid failed to operate because of less rainfall in 2021.

Iran accounts for about 4.5% of BTC mining, accumulating huge fortunes in crypto. It can use the profits to evade sanctions and purchase imports. Cryptocurrency mining is lucrative and complicated. Besides Iran, Tesla had to suspend BTC transactions because of the dangers the virtual coin has to the environment. Moreover, many countries have prohibited crypto mining due to the risks that the activity carries.

Multiple nations are launching crypto mining clampdown and bans for various reasons. For instance, over the last week, China imposed crackdowns on crypto usage to support its digital yuan. Unfortunately, the cryptocurrency community will feel the effect on cryptocurrency prices for months to come.

It is no doubt that cryptocurrencies will have to be eco-friendly to survive in the coming market environment.

What impact does Iran’s move to suspend crypto mining has on the crypto market? Will investors continue to witness losses? You can comment on your thoughts below.

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