The Government of Iran, as of June 22 of this year, will once again suspend access to electricity for Bitcoin miners registered in this country.
Mostafa Rajaba Mashhabi, spokesman for the state electric power industry, mentioned Iran’s electricity demand is estimated to exceed 63 GWh this week. Reason why they decided to take this measure, which it will paralyze the activities of the 118 mining farms registered with government authorities.
During 2021, the Iranian power company averaged one generation of 65GWhtherefore, if the Government’s predictions are fulfilled, energy demand would be very close to being greater than production. This could cause a collapse in the electricity supply of the entire country. In fact, during the month of August last year, electricity consumption exceeded 67 GWh.
Despite having set a date for the cutoff of electricity to Bitcoin miners, there was no mention of when this restrictive measure will be lifted.
Causes behind the new cut to the electricity supply to Bitcoin miners in Iran
Among the main causes to which the authorities appeal to regulate or cut the electricity supply are weather conditions. In this case, Iran is no exception. Certainly, The Asian country has been facing a severe drought that is exacerbated by high summer temperatures.
Added to the climatic causes are the energy production problems faced by Iran, which barely manages to cover the national demand. This despite the fact that most of the Iranian electricity industry works on the basis of natural gas, a product of which this country has vast reserves.
Must Suspending Bitcoin Mining Represents a Dilemma for the Government of Iransince this has served as an instrument to evade the consequences of Economic sanctions imposed on this country by the United States.
Bitcoin miners in Iran: one step forward and one step back
Bitcoin miners in Iran they have not been able to carry out this activity with full freedom due to the constant changes in the discourse of the authorities. Over the past few years, the Iranian government has repeatedly suspended Bitcoin mining. The reasons alleged by the authorities are normally related to the deficiency in the country’s electricity supply.
The last time the Government of Iran punished Bitcoin miners registered in the country was between the end of 2021 and the beginning of 2022, when they called for the sector to suspend their activities. CriptoNoticias reported that on that occasion it was not the heat, but the cold of winter that caused this government decision to be made.
January is usually the coldest month in Iran, when temperatures can range on average between 1°C and 8°C. This requires a greater use of heating systems among the inhabitants of this country and, consequently, the electricity consumption is much higher.
Bitcoin mining, due to its Proof-of-Work (PoW)-based consensus algorithm, requires high power consumption. This has served as an excuse for many governments when they want to point the other way when their electricity industry begins to show deficiencies.