Topic: Iran to cut electricity to licenced Miners (Read 308 times)

Just 4% i don't think this should have any major impact on the overall bitcoin hash power, all it will do is give a little correction to the hash rate and eventually it will get back in trend. Talking about price and market these sort of news would have already been discounted by the market so any price correction which might have happened due to this has already been discounted in the price. So you shouldn't worry about the price for sure.

So how is the Hashrate at an all-time high and surging rapidly when it is going down?

The ATH was on May 11th, I'm not talking about random daily spikes which hold no mining as they could look different by simply changing the time when the day begins, EST, GMT, PST but about difficulty adjustments, it was at 223.70, the last adjustment brought it down again to 211.63 so that is a -5.39% from an ATH more than a month ago.
And the current trend is also down although again a slight variation, of just 1% now.

So the numbers might be right, just as everyone was surprised when it happened to Kazasctahn, seems like Iran is also in the 1% of overall hashrate with a +/- 1% error margin.


What, 0.12% of the total?
If they had 5% it would've been instantly shown even in the last adjustment but it's not the case.
So basically no news, or on the same level as Madagascar banning it.

We can't know for sure the impact of this news, but yet I don't see how the ceased operations of some mining farms located in Iran that operated without a license would affect the price. Especially with a below 5% weight in total mining power this should be quite insignificant. I'm sure there are farms developing all over the world. Take a look at the chart below. The mean hash rate is at all time highs and surging quite rapidly while the price is having a downturn. The recent drop in hashrate might be caused by mining farms who are forced to cease operations as they can't cover their expenses.

That's a piece of awful news for the miners in Iran, I guess after this they will try to do underground mining because when they pay their money to buy the mining stuff and maybe pay some money for the rent someplace to the miners they did calculate everything and they were hoping to be able to mine without of any problem during the year, especially when they have got the license for mining bitcoin, I think that's a very false movement by the Iranian government and none will seek for a mining license for their business after this.

What a bad news for the miners out there they might be hard to stand up again and they might be paying some fines due to their wrongdoing. That's really a high contribution considering there are only a few miners out there as a whole and I wasn't aware Iran has that huge number of miners. They aren't really totally hostile against miners but cutting their electricity without warning is just one thing they don't want anymore in their country because of these electricity issues. It's clearly affecting every miner because of this current issue those miners that are operating in the friendly countries might consider thinking of the possibility that this kind of thing will happen to them too, so they need to think of another way now.

Power cuts for miners will likely be temporary since Iran is entering summer and it needs to ensure enough supplies for the country during this time. It is possible that the power cut to all licensed miners could also be part of an attempt to detect and combat illegal mining facilities that use unauthorized electricity.

Recently, the market has fallen continuously for various reasons and I don't believe that this is the cause of the market's current weakness.

The Iranian government is just trying to give more attention to industries or firm that uses power to produce or offer basic needs or services.
That is what every responsible government would do. In my county we have many illegal users of electricity and recently the government criminalized  such wicked act. Our expectation is that this action of Iranian government would not negatively affect the price or processes of Bitcoin. But I give kudos to the Iranian government for not only making Iran Bitcoin friendly but for also subsidizing power.   

I would say this was definitely not the cause though. I mean FED increasing the rates literally caused people to withdraw billions of dollars from crypto easily, how could Iran cutting electricity to miners would have the same impact as that? I am not saying FED is the main reason, but there were pretty big things compared to what Iran did.

We are in a free market where the price only drops when people sell, there is no outer reason for it, there is no crash that is forced by anything, it is just us selling and that's it. It means that whatever is the reason why people sold, that is their business and only they would know, everyone could have a different reason.

Decisions like this inevitably have to be taken by the Iranian government to overcome the greater use of electricity by crypto mining companies. There are around 118 authorized digital currency extraction centers in Iran that had to be cut off from the national grid early this July. because Iran's electricity consumption recorded an all-time high of 62,200 Megawatts.
Hoping that crypto mining companies can make renewable electrical energy which of course will not burden Iran's national electricity consumption too much.

I think that what Iran has done is normal during times of peak demand for electricity during the summer, there are many countries that have taken similar steps to preserve electrical energy to operate factories and vital economic facilities that are necessary for the continuation of the economy in the country, so this step cannot be hostile towards mining Specifically, this is a temporary measure and I believe that 5% of the network power that miners in Iran provide will not have an impact on the strength of the network or the price of Bitcoin.

The decrease from them of hashrate will be covered by other miners somewhere else. And then eventually after they licensed most of their miners, depending on the local rules. Some might even choose to operate without being licensed by the government.

It all depends on the incentives or the regulation that they will implement for the miners in Iran.

AFAIK, most big miners have been using renewable energies.

What a surprise, a totalitarian government that brags every day about how powerful their country is and how advanced and what technology they possess is shutting down miners because, well, in reality, they don't have are capacity for a few MW, remember that the 600MW was the overall consumption including illegal mining, so the grid is destroyed by 200MW now? They have found the culprit for their 40% inflation. 
Just as they have solved the food crisis by shooting protesters that are demanding food, not they are solving the energy problem, shutting down 0.10% of the hashrate will surely solve everything.



And a tiny difference that only the Whinstone farm, even before full completion, consumed more power than what their ministry says all miners in Iran did.

As the members mentioned in the previous comments, the percentage of percent, I do not think, will constitute a major obstacle to the volume of what is being exploited in mining cryptocurrencies with a government license.
Perhaps I would have been more comfortable if I knew that the government would limit the exploitation of electricity by miners in view of the global crisis that imposes a kind of undeclared austerity to avoid a shortage in the supply of basic electricity and energy.

You can check out the significance of that move by looking at the chart here: https://www.blockchain.com/charts/hash-rate

You can see there was not much of a downfall before January 2021. The hash rate kept going up to reach an all time high this May . It's rather the price trend that's affecting the mining business. The more valuable Bitcoin is, the more profitable it is to mine it. You can see that there was a sharp drop this month when Bitcoin took a dive and we went below the level of miner capitulation. It's like they started to shut down some of the least profitable equipment when they went too much into the red.

Wat they should promote is the natural sources of energy. We need more incentive to use natural resources. And in that part of the globe, don't they have plenty of sun/sun light that they could take advantage of? We have an unlimited source of power, yet the adoption is hard to get a grip, probably because electricity businesses have huge power over countries policies, economics and others. Energy market is probably one of the most powerful sectors along with pharmaceuticals.

i am with their government as well. if they want to earn money from crypto in legal way, they should pay their electricity. so it is just right that illegal miners are cut off with electricity. because if not, their government will pay for those stolen electricity while the miners can earn using free electricity. so yeah, this is not fair at all.
and since the % is just small, i don't think it will significantly impact the bitcoin's price. and these miners that were cut by electricity, they will now force to pay in order to continue their business, which they should do to begin with.

I don't think this development will cause any noticeable changes in the network as long as only illegal mining electricity is cut off since their mining Bitcoin with stolen electricity I will say this is not negative news but rather a clean-up in the mining industry, the best thing to do by miners is to migrate up to using hydro electricity to generate their power to power their mining farm instead of relying solely on the national grids for power supply.

Yeah, there's too much going on right now, to deem anything as causation. Even if we could it pick out things, we wouldn't be able to narrow it down, and with confidence say x, and y caused the drop. I imagine Bitcoin will hang around the current price for a while, at least within a few thousand of the current price. 5% can be deemed quite a lot in certain things, but for a drop in the mining share, probably isn't a massive problem, especially in the long run.

A little more accessible to people who can't afford x amount of hash rate also. Obviously, difficulty will adjust, and mitigate that. I think the main problem has been that mining in the West, at Western electricity costs, meant there wasn't many doing it in the West, and usually either resorted to offshoring their machines or looking for alternative energy methods.

I do not think the article is badly written, when crypto mining was legalized in Iran, some miners were mining illegally and the illegal mining is increasing, this will consume more electricity that the illegal miners are not paying for, so it is not helping the government and the country. We can just put it like this, because of the sinful ones, the holy ones are also punished.

The government had done such earlier and point to more electricity to be available during summer to be the reason, done earlier means it was not done this time, but in the past recent time. But maybe this would be temporary as that time earlier may also be in connection with this.

It is badly merging two different statements.
1. Iran is always fighting illegal miners who are mostly stealing electricity to mine cryptocurrencies (with basically free electricity). The operation against them is always intensified during summer since the electricity consumption naturally grows a lot.
2. Power is supposedly going to be cut for undefined period to legit miners with licence like some other industries to pre-plan for the natural increase in electricity consumption.

That is nonsense. Iran has the biggest gas reserves in the world and is currently extracting the highest amount per day, that is more than we can use and most of it is being exported.

The problem is that manufacturing of new power plants hasn't been as fast as speed of consumption increase. For example the construction of the 2 new nuclear power plants would take another year to finish which is normal but still it can't keep up with the consumption. There are 2 more under construction that would take longer than that.

That is partially nonsense. Energy in Iran has always been cheap because we have the biggest reserves in the world and extraction of it is easy and the quality is high (eg. the oil is light and doesn't need much effort to extract). Also due to exchange rate and the sudden drop of it 4-5 years ago the cost becomes a lot smaller when converted to dollars.