Is Iran the new Bitcoin-Miner-Paradise?

in #mininglast year

Hello dear blog readers and members of NEXUS Global,

today we would like to share an article with news from the field of cryptocurrency mining again.

The original article in German can be found here:

Iran Miner Paradies?

Bildquelle Shutterstock and BTC-Echo

Bitcoin mining investors are attracted to Iran. The country attracts with low electricity prices. But here too lurking problems: Bitcoin miners are being held at the border and the hardware confiscated. Nevertheless, mining investors remain confident.

While there are currently the largest mining pools in China and most of the computational power for bitcoin mining is consumed in the Middle Kingdom, the country recently threatened to ban mining due to high power consumption.

Miners leave China

But not only the expected strict regulations, but also the current electricity price and the Bitcoin price decline at the end of 2018 lead to Chinese miners pushing their relocation, reports the Chinese crypto news site 8BTC. The preferred new miner locations are currently Canada, the US and Iceland. Medium-sized mining companies are more likely to move to the geographically closer countries of Thailand, Cambodia and Vietnam.

But now Iran is emerging as a new mining hotspot. The main reason is the low electricity price of $ 0.006 per kilowatt hour. In comparison, the electricity price in China is 0.015 US dollars. In winter, the mines will be even more expensive for Chinese miners, because the price of electricity rises in the cold season threefold.

Electricity price as the most important indicator

Liu Feng is one of the first batch miners who ventured to move to Iran. He raves about 8BTC's low electricity and labor costs in Iran:

"If you invest in power plants in Iran, the government will deliver there free natural gas in the first five years, further reducing electricity costs, gasoline costs only 0.6 yuan per liter, and diesel 0.4 yuan per liter also quite cheap."

More than 90 percent of Iran's electricity is generated by abundant natural gas.

But not everything is rosy in Iran: Because of the high subsidies of electricity, the government has the Bitcoin mining equipment because of their high power consumption with an import ban, reports Liu Feng:

"It is said that Iranian customs has so far seized at least 40,000 crypto-mining devices of various models."

But even if miners make it across the border, problems can still arise.

I found a power plant and they could offer electricity for 0.06 yuan ($ 0.009) per kilowatt-hour. After deduction of operating costs, we have agreed on a profit sharing 70/30. But two months later, the power plant claimed a 50/50 split and doubled the price of electricity.

This prompted Liu Feng to resell his mining farm.

But there are also positive reports. He, Chinese director of a company in Iran, emphasizes:

"At present, only in the Iranian customs zone is the mining import and export duty-free."

The creation of a cloud computing industrial park within the customs zone was also supported by the Iranian president.

"Mining investors must deposit a certain amount of repayable power bail into Iran's state network, and small and medium-sized miners could apply to join the Industrial Park jointly."

He reports.

With nearly 900 megawatts of power, the cloud computing industrial park can accommodate 500,000 to 600,000 miners.

This could make the perhaps largest mining park in the world.

Original article in German:

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This article was published by @future24 on behalf of Michael Thomale @michael.thomale.


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