More bad news for bitcoin: Iran bans cryptocurrency mining for 4 months


They say that bad news never comes alone and the streak that bitcoin is suffering comes to prove it. In the last few weeks he is receiving a series of blows that have caused a significant loss in value, and as a consequence also in that of other cryptocurrenciesand now another news has arrived from Iran that affects its production.

In recent weeks we have seen that Tesla stopped allowing the purchase of its cars with bitcoins due to the environmental cost of mining that cryptocurrency, then China placed a series of restrictions on it and now Iran has banned cryptocurrency mining for four months due to electricity consumption that entails

Reuters has published this news and to fully understand it you have to know that The Iranian electricity network is one of the cheapest that exists, being subsidized by the Statewhich has caused the proliferation of mining farms.

Such is the impact of cryptocurrency mining in Iran that is causing occasional power cuts and there is concern about what it may mean when added to the greater consumption that is carried out in summer by citizens.

In order to solve it, Hassan Rouhani, president of the Islamic Republic of Iran, has announced that prohibits any mining from now until September 22.

It is a hard blow for the cryptocurrency when it is estimated that about 4.5% of bitcoins are mined in Iran. This aspect also represents a boost to the country’s economy, according to some media, although Rouhani affirms that on he “85% of current mining in Iran is unlicensed. As with other issues in this country, it is difficult to know for sure the real numbers.

What was missing: cryptocurrencies contribute to aggravating the ecological crisis

What was missing: cryptocurrencies contribute to aggravating the ecological crisis

The use (and production) of cryptocurrencies requires large data centers that have high energy consumption at all times. We analyze where these centers are and the damage they can cause to the environment.

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Ultimately, be it ecological reasons, mistrust, political or supply, the problems facing bitcoin in recent months they seem to have worsened. We will see what consequences all this has on the cryptocurrency, although it is better not to bet in any specific direction given its volatility.