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Bitcoin mining in Iran could return to half price in September

Iran will allow Bitcoin mining again as of September 22, 2021, and miners could receive a reduction in electricity billing to half the price, according to reports citing authorities of the country’s electricity sector.

The Electric Power Generation, Distribution and Transmission Company of Iran (Tavanir), announced that on September 22 it would lift the ban on cryptocurrency mining carried out by the Ministry of Industries, Mining and Commerce of Iran last May.

The source consulted by the Financial Tribune newspaper, a Tavanir spokesperson, pointed out that if domestic electricity consumption falls, the price of electric service for Bitcoin miners could also be cut in half.

Iran has allowed Bitcoin mining, but a crisis in the electricity system led to a halt to such activity throughout the country since last May. Source: elements.envato.

As explained in the report, the base rate for miners is 16,574 Iranian rials (IRR), per kilowatt per hour (USD 0.11 KW / h), a price set by the local Iranian forex market NIMA.

This price is 4 times higher than in April 2021, before the ban, which was IRR 4,800 per kilowatt per hour, equivalent to $ 0.39 (USD).

But the reduction in prices for Bitcoin miners could depend on the reduction of electricity consumption in the country, which they point out usually occurs at the end of the summer. The authorities have indicated that the high electricity demand during this season, where there is also a drought, makes it difficult to generate energy.

As CriptoNoticias reported, the decision to allow the mining of Bitcoin and cryptocurrencies again lifts the measures of the previous government, led by Hassan Rouhani, who was President of Iran until August 5.

They even got to the point of seize more than 7,000 mining equipment in Tehran, the country’s capital, although they have also issued some permits to miners.

Bitcoin hash rate could rebound with help from Iran

After the mining bans in China, miners have been migrating to nearby countries such as Kazakhstan, but also to the United States (USA).

Since then, the Bitcoin hash rate has recovered, indicating that miners have been progressively re-establishing themselves. Therefore, if the miners restart their operations in Iran on September 22, they could contribute to the recovery of the hash rate.

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: Tammy@oicanadian.com Phone: +1 513-209-1700

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