Iran To Renew Electricity Access For Legalized Crypto Miners
When Iran experienced electricity shortages recently, it ruled that power utility firms must stop providing these miners with electricity access. Now, the authorities are willing to change that stance but only for select miners.
Only Authorized Miners Can Start Mining Cryptocurrencies Again.
The financial tribune has reported that Tavanir (Iran’s power utility management company) announced that Iranian authorities would lift the Bitcoin mining restrictions for all crypto miners in the last week of next month. Per the announcement, there will likely be a reduction in power consumption as the summer winds down.
This reduction in consumption is the result of lower temperatures. Thus, companies with significant electricity consumption rates, especially Bitcoin miners, can resume their services. While announcing a ban on cryptocurrency mining operations three months ago, Iran’s president revealed that the large electricity consumption of crypto miners was one primary reason for the constant power outages experienced all over the country.
Initially, miners were given periods of operation during early summer when the weather was considerably hot to drive down the consumption rate. But when that didn’t have the desired effect, it gave a total ban.
Iran’s Power Utility Management Company Stops Activities Of Illegal Miners
After the announcement of the ban, the country’s crypto ecosystem was left frustrated and often publicly criticized the authorities’ actions. Hence, most of them resorted to accessing electricity illegally.
Tavanir eventually discovered that authorized miners don’t consume more than 350 megawatts of electricity per day, while the unregistered ones were responsible for about 3,500 megawatts daily. These unregistered miners consumed 50% of the capital’s electricity consumption rate.
Cryptocurrency operations have been legalized in Iran for about two years now. The ministry of industries licenses all authorized miners, and export prices determine their electricity payment rates.
A check on this ministry’s website indicates that 29 firms have so far obtained their mining license. In the first quarter of this year, electricity regulators made an upward review of electricity tariffs for miners, which saw these miners pay x4 of the previous tariff. But miners were given the concession to pay 50% of this tariff when there is a decrease in-home consumption rates and less stress on the electricity grid.
However, law enforcement agents attached with Tavanir continue to crack down on unauthorized miners since they consume the largest rata of electricity and even destroy the electricity grid. So far, it has seized over 215,000 mining rigs (worth about $4 million) in the last 12 months.
Bitcoin Dominance Rate Might Decrease To A New Low
The Bitcoin dominance rate (BDR) has been on a bounce for almost three months now. However, since the end of last month, it has been on a decline. While it is about 44% now, another significant decline might take it below 39%.
Unfortunately, all technical indicators point to a further decline. Even in the last 14 days, the Bitcoin price’s bullishness has negatively impacted the BDR. Hence, if BTC keeps rising, BDR is expected to fall to a new low.
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