Iran Cracks Down On Cryptocurrency Mining, Shuts Down Nearly 1,000 Bitcoin Mining Rigs
Creating new cryptocurrency continues to be an underlying problem in the crypto world. This is because new cryptocurrency is created through mining. As noted previously, mining consumes a huge amount of electricity. This has become serious in recent years, seeing many organizations including governments ban or oppose the activity. The most recent country to oppose this activity has been Iran. According to recent reports, Iran has shut down nearly 1,000 Bitcoin mining rigs due to high rise in electricity consumption. The country's power grid has been suffering for the last couple of months disrupting power access in households. However, the shut down came in the wake of a sudden surge.
Does The Good In Crypto Justify The Environmental Effects?
According to one report, it has been noted that to mine one Bitcoin takes enough electricity to power 24 households.
Mining pools have been on the rise in Iran, with authorities stating that there has been a 7% spike in the past month. This coincided with fresh sanctions from the U.S to Iran, which many analysts say Bitcoin could help Iran avoid. Iranians are beginning looking at Bitcoin as an alternative to their fiat currency, and one expert, in particular, believes this could be enough to drive prices to $100K.
Iran has in recent years become a preferred destination by many mining pools due to its low cost of electricity. This could, however, change as the government has shown intent to continue cracking down on mining cryptocurrency. In most countries, mining pools have been forced to pay premium prices for electricity. This could be the easiest solution for Iran, allowing mining pools to continue operating in the country and for the government to expand its power grid.
Securing The Future Of Cryptocurrencies
However, this will still not solve the mining issue which continues to be a big and growing problem. A recent report has stated that currently the amount of electricity consumed in mining Bitcoin is about the same as the one used by the entire country of New Zealand. The world needs to find a more sustainable and environmentally friendly way to mine cryptocurrency and one as such is the use of renewable energy.
About The Author
John KiguruJohn is an exceptional writer with a liking on technology, finance and the intersection of the two. A firm believer in the transformative potential of cryptocurrencies and the blockchain. When he is not writing, he likes to listen to Nas, Eminem and The Beatles.
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