After a four-month hiatus in Bitcoin mining, Iran is finally reconsidering its position in the matter.
The country was forced to issue a ban early in the summer after brownouts and power shortages became so problematic that any excess energy consumption had to be cut out.
Now, reports by Financial Tribune have revealed that President Hassan Rouhani may be reversing the prohibition, which is due to expire on September 22.
According to a statement by the country’s Power Generation, Distribution and Transmission Company, the ban on Bitcoin and crypto mining will not extend past this date.
This means that legal crypto mining operations will be able to restart work, although many have already left the country or sold their hardware to mitigate losses. Should Iran join mining again, experts expect another increase in the overall Bitcoin blockchain hashrate.
Iran accounted for 4.5% of global Bitcoin mining in April. However, the hiatus has definitely sapped many of the mining operations, depriving them of a valuable window of opportunity.
Bitcoin mining is doubly important for Iranians who are battling widespread economic sanctions imposed by a US-led coalition and for many citizens; the income from Bitcoin has been a good way around that, especially during times when Iran’s power grid has been pushing more than it has been consuming.
Unlike China, where the state prohibited Bitcoin mining altogether, Iran regulates the activity, but it keeps close tabs on power consumption and may pull the plug – even if temporarily – at any time that the national power grid is unable to cope. As a result, Iran is able to tax Bitcoin and generate additional income.
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