Finally, a week after the downfall, a significant rise has been recorded in the cryptocurrency industry. However, Iran has sad news for the cryptocurrency industry which may pull it down once again.
Iran Cuts Power to Legal Mining Centers
Just recently, the Ministry of Energy’s spokesperson in Iran, Rajabi Mashhadi, talked about the legal mining centers in Iran. While talking to one of the local news outlets known as “Arz Digital”, Mashhadi stated they will have to cut power to the mining centers.
He confirmed that the power supply to all of the legally authorized cryptocurrency mining centers will be cut off. He revealed that they will be proceeding with the cutting of the power supply at the beginning of July.
Rajabi Mashhadi has stated that as a result of the power supply cut-offs, 118 authorized and legalized cryptocurrency mining centers will be affected. These mining centers are referred to as extraction centers in Iran. From the beginning of July, they will be cutting off the power supply to all the authorized mining centers from the national grid.
Electricity Consumption in Iran
Last week, all-time high electricity consumption was recorded in Iran, which was reported to be 62,500 megawatts (MW). The electricity consumption department predicted that in the running week, the consumption of electricity will shoot even higher.
It was reported that in the running week, the consumption would exceed the 63,000 MW figure. Therefore, it was very important for the electricity supply to be limited. This is the reason it has been decided that the mining centers, legally authorized to mine cryptocurrencies in Iran will have their power supply cut off.
Disappointing Gains in GW in 2021
Just recently, the ministry of energy provided a detailed report on the gains in electricity in the year 2021. They revealed that the gains were just 1.2 GW, which is a huge disappointment. The reported gains were much lower than the projected gains of 3.5 GW.
Therefore, the ministry of energy had to make the harsh decision of cutting the power supply to the mining centers. This was one of the smart moves as per the ministry of energy’s spokesperson to cover the deficits they have encountered with electricity.
The Sanctions Play a Huge Role
Iran has been the victim of many sanctions imposed by the US and its allies in the past decade. Despite being a promising country, the sanctions have hindered its path in bringing in the right amount of investments it lacks in the energy sector.
Over the past couple of years, Iran has made a name being one of the top 10 countries in mining cryptocurrencies. With Iran cutting power supplies to the legalized mining centers from July 1, the crypto sector may experience a dip in prices.