The third Bitcoin mining giant after China and the United States, this country's residents are in trouble with the sector

The third Bitcoin mining giant after China and the United States, this country's residents are in trouble with the sector


The rally in the price of Bitcoin, at an all-time high of more than $ 40k, has had unintended consequences in some parts of the world. A report by Wu Blockchain claimed that Bitcoin's mining operations in Iran caused power outages in the country, angering the country's residents.

As a result, Iran ordered the cessation of the activities of licensed BTC mining companies from January 14 of this year. The report shows that most of the companies are Chinese. The rise in the price of Bitcoin has created strong incentives that have attracted Chinese investors to mining activities.

Power outages were reported in 11 of Iran's 31 provinces. After the outages, Iranians began to express their displeasure, and the media attributed the massive power outages to Bitcoin mining. The government did not elaborate on the issue, but decided to put pressure on Bitcoin mining pools.

The increase in the price of BTC coincides with a drop in the cost of producing a Bitcoin that is at a low point in Iran. To produce 1 BTC in this country, a pool needs only $ 1,300, with an average price of $ 0.020 per kWh. Iranian official data show that producing 1 BTC in the capital Tehran consumes about 72 thousand kWh, or the equivalent of 28 houses ' annual electricity generation.

The report said the Iranian regional bloc organization claimed that all Bitcoin mining activities occupy only 300 MW of the 38 thousand MW of electricity produced in that country, and added: "suspending mining activities is a government strategy to take advantage of more Bitcoin mining companies.”''

Will the United States become a global hub for Bitcoin mining?

Data from the Wu blockchain reveals that Iran has about 8 percent of its total Bitcoin supply. This country's funds in BTC rank third after China and the United States. In the near future, however, there may be a shift in the mining industry in favor of U.S. companies.

Wu's previous report noted that BTC mining companies in China had operating problems related to account closures and blockades. Authorities in China have taken “anti-money laundering measures” that hinder BTC's ability to trade with yuan and carry out transactions such as paying electricity bills.

In this regard, Barry Silbert, founder and CEO of Digital Currency Group (DCG),the parent company of Grayscale, announced the creation of a mining group with Foundry. Silbert said This would be one of Bitcoin's largest mining operations in the United States, adding::

"Time for Bitcoin hash to come to America! From February, Bitcoin miners around the world will be able to join The Foundry USA group.''

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