Bitcoin Mining in Iran Could Return to Half Price in September

Iran will once again allow Bitcoin mining starting next September 22, 2021, and miners could receive a reduction in electricity bills by up to half the price, according to reports citing authorities in the country’s electricity sector.

Iran’s Electric Power Generation, Distribution and Transmission Company (Tavanir), announced that next September 22 would lift the ban on cryptocurrency mining

made by Iran’s Ministry of Industries, Mining and Trade last May.

The source consulted by the Financial Tribune

, a spokesman for Tavanir, said that if domestic electricity consumption falls, the price of electricity service for Bitcoin miners could also be reduced by half. Bitcoin Mining in Iran Could Return to Half Price in September Bitcoin Mining in Iran Could Return to Half Price in September Iran has allowed Bitcoin mining, but a crisis in the electricity system led to stop such activity throughout the country since last May. Source: elements.envato.

As explained in the report, the base rate for miners is 16,574 Iranian rials (IRR), per kilowatt per hour (USD 0.11 KW/h), a price set by the local Iranian forex market NIMA.

This price is 4 times higher than it was in April 2021, before the ban, which was IRR 4,800 per kilowatt per hour, equivalent to $0.39 (USD).

But the reduction in prices for Bitcoin miners

could depend on the reduction of electricity consumption in the country, which they point out usually happens at the end of the summer. Authorities have pointed out that the high electricity demand during this during this season, where there is also drought, makes it difficult to generate power.

As reported by CryptoNews, the decision to allow Bitcoin and cryptocurrency mining again raises the <a href=”” target=”_blank”

rel=”noopener”>measures of the previous government, led by Hassan Rouhani, who was President of Iran until last August 5.

They even went so far as to confiscate more than 7,000 pieces of mining equipment in Tehran, the country’s capital, although they have also given some permits to miners.

Bitcoin Hash Rate Could Recover With Iran’s Help

Following the mining bans in China, miners have reportedly been migrating to nearby countries such as Kazakhstan, but also to the United States (US).

Since then, Bitcoin’s hash rate has recovered, indicating that miners have been gradually re-establishing themselves. Therefore, if miners resume operations in Iran on September 22, they could contribute to the recovery of the hash rate.