Iran has 8% of the total amount of Bitcoin. Only the USA and China have more BTCs
The cost of mining of 1 BTC in Iran is about $ 1,300, and electricity prices have fallen to $ 0.020 per kWh, but the government still stops the work of mining companies, and Digital Currency Group announces the creation of a new pool for bitcoin mining in the United States.
BTC grows, and Tehran stops its production
The rise in the price of Bitcoin to a new all-time high of $ 40,000 has had undesirable consequences in some parts of the world. The Wu Blockchain report claims that Bitcoin mining operations in Iran may have caused a power outage in the country. As a result, Iran ordered to stop the activities of licensed BTC mining companies from January 14 of this year. The report indicates that most of the companies are Chinese.
The increase in the price of Bitcoin has created strong incentives that have attracted Chinese investors to mining activities. Power outages were reported in 11 of Iran’s 31 provinces. After the power outages, residents of the country began to express dissatisfaction, and the media associated the failure with the production of cryptocurrency. The government did not provide a detailed explanation of the reasons for the failures, but decided to take action on pools for Bitcoin mining.
The rise in the price of BTC coincides with a decrease in the cost of production of Bitcoin, which is at its lowest point in Iran. To get 1 BTC in this country, the pool needs only $ 1,300 at an average price of $ 0.020 per kWh. Data from the Iranian government shows that the production of 1 BTC consumes about 72,000 kWh or the equivalent of the annual electricity production of 28 homes in Tehran, the capital of the Persian power.
The report also states that an Iranian regional blockchain organization claims that all cryptocurrency mining operations take up only 300 MW of the 38,000 MW of electricity produced in that country. The suspension of mining of crypto assets is more related to the government’s strategy of “using Bitcoin mining companies”.
Will the United States become a global Bitcoin mining hub?
Wu Blockchain data shows that Iran accounts for about 8% of the total number of Bitcoins. This country’s funds in BTC are the third largest in the country, second only to China and the United States. However, in the near future, there may be a shift in the balance of the mining industry in favor of US companies.
A previous Wu Blockchain report indicated that in China, BTC mining companies were experiencing problems closing and blocking accounts. The authorities of the Asian giant have adopted “anti-money laundering measures” that do not allow you to exchange BTC for yuan and perform operations such as paying electricity bills.
In this regard, Barry Silbert, founder and CEO of Digital Currency Group (DCG), the parent company of Grayscale, announced the creation of a mining group with Foundry. Silbert said it would become one of the largest Bitcoin mining companies in the United States, and added the following:
“It’s time for Bitcoin hash to come to America! Bitcoin miners around the world will be able to join the Foundry USA group starting in February.”