According to authorities, bitcoin mining is struggling with electricity in winter. The government desires to reduce the fuel consumption of power plants.
Bitcoin mining in Iran gets affected again in 2021. The authorities advised that operations in the farms that legally work in that country must stop because of the arrival of winter.
The measure took effect because, according to the authorities, mining activity has caused power outages. According to Mustafa Rajabi Mashhadi, a spokesman for the electricity industry, the decision is to reduce the oil consumption in power plants.
The official reported that temperatures would decrease in the coming days; This situation means an increase in gas consumption. According to what he explained, this action may limit fuel supply to power plants.
From November to March, the temperature crumbles down in Iran, but the authorities are preparing for January, the coldest month of the year. In this period, temperatures can drop to an average minimum of 1 ° C and a maximum of 8 ° C. This situation encourages the use of heating and, therefore, impacts the electricity supply that also includes the bitcoin mining farms.
The new pause for Bitcoin miners comes after, last October; the Persian authorities lifted the previous veto after four months of inactivity. The miners had to stop operations due to the constant power outages and the prolonged drought that the country experienced; the increase in energy demand due to the summer was also a reason for the miners to stop their activities.
They Keep Installing Bitcoin Mining Farms
Despite the struggles with the electricity supply that Iran went through over the year, the country has already installed a considerable number of Bitcoin mining farms. Last June, that country granted licenses to at least 30 mining farms in diverse provinces of the Persian nation to start their activities.
However, the message that Iran sends can get interpreted as an unstable country that cannot produce bitcoin since the transmission of electrical energy will depend on the seasons of the year.
Temporary Bitcoin Mining Ban in Iran
Iran’s action took effect just when last May they temporarily banned, until September of this year, Bitcoin mining due to the power outages that they had experienced that month, as reported by this medium.
According to the government, digital mining was interfering with the national electricity system. The energy deficit would also be a consequence of the prolonged drought in the country and the increase in energy demand during the summer.
Hassan Rouhani Wants Regulations for Bitcoin
Another of Iran’s decisions to control the bitcoin market in Persian territory was announced by the president of that country, Hassan Rouhani.
Rouhani asked his government cabinet to execute measures to regulate bitcoin and cryptocurrency trading. These measures were born because he considers it necessary to preserve and protect the national interests of his country against the digital assets’ expansive approach.
By Jenson Rivas
