Bitcoin miners in Iran have been ordered to stop their operations. Per a Bloomberg report, the Western Asian country directed all authorized cryptocurrency mining centers to shut down to reduce the strain on the electricity grid and avoid knockouts.
The advertisement, which was made by Mostapha Rajani Mashhadi, the director of Iran Grid Management Co., added that the ban on mining will be in place till March 6, 2022. The move will see about 209 megawatts of power freed up and made available for Iranian homes during the downtime.
Mashhadi also revealed that the country would be cracking down on illegal Bitcoin mining which is estimated to regard for over 600 megawatts of power consumption in the country. The rearmost Bitcoin mining ban is the alternate time the country has halted crypto mining operations to free up power for ménage use in lower than 12 months. The first ban passed in May 2021, shortly after China also showed miners the door, and ended in October.
Energy is still a major challenge to the Bitcoin network
Chancing sustainable energy to carry out the power-ferocious process of Bitcoin mining remains one of the challenges facing the Bitcoin network. The ban on Bitcoin mining in Iran could have some effect on the hash rate of the Bitcoin network as Iran is one of the major contributors to the hash rate. According to the Cambridge Centre for Alternative Finance Bitcoin mining data aggregation tool, Iran accounts for3.8 of the hash rate of the Bitcoin network encyclopedically.
Analogous to Iran, Kazakhstan is facing an energy problem that they attributed to being caused by the recent swell in Bitcoin mining in the country. Kazakhstan’s donation to the hash rate of Bitcoin rose vastly to reach18.1 this time after Chinese miners migrated to the Central Asian country. They're taking analogous way with Iran also to free up power for ménage use.
Away from chancing cheap and sustainable sources of energy to power Bitcoin mining operations, the assiduity also faces challenges in getting access to tackle, capital, and gift. The political pitfalls are also substantial for the assiduity as regulations aren't entirely clear across the world.
The way forward for Bitcoin mining
Despite the challenges, Bitcoin proponents are auspicious they can be surmounted as the assiduity matures and there's further wide mindfulness, collaboration, and problems answered. The belief stems from the strong value proposition of Bitcoin as a way to give fiscal freedom to millions of people.
Some of the stylish minds in the crypto-community including the CEO of Block, Jack Dorsey, are taking the action to break the troubling problems of Bitcoin mining.