Mining crypto

Crypto Miners in Iran to Face Blackout as Mining Becomes Unprofitable

Iranian authorities have announced that crypto miners operating in the country will have their access to electricity cut off by June 22.

According to a Tehran Times report, the decision was taken by the government to ensure sufficient energy supply for the citizens.

A spokesman for Iran’s Energy Ministry, Mostafa Rajabi Mashhadi, said the Asian country expects a higher energy consumption rate from next week.

He revealed that the country recorded a record consumption of 62,500 MW during the peak period last week. This figure is expected to reach 63,000 MW by next week.

This forced the government to act to avoid a blackout.

According to Tehran Times, since Iran approved crypto mining as an industrial activity, the government has issued over 1,000 crypto mining licenses to several companies.

Apart from licensed operators, the country also has many unauthorized crypto miners who put more pressure on the national network. The government has tried to crack down on these players at different times without much success.

As the value of Bitcoin and Ethereum continue to fall to new lows, crypto miners are beginning to discover that the cost of mining these assets is becoming unprofitable.

According to data from CryptoRank, the drop in Bitcoin price has made mining significantly unprofitable. According to the data, the average cost of mining and the price of Bitcoin are now at par.

This data was released on June 17, when Bitcoin was trading above $20,000. Since then, its price briefly fell below $18,000, which means mining the flagship asset would be less profitable.

In the case of Ethereum, the average cost of electricity in Europe and the United States makes the reward generated from mining unprofitable.

For context, a miner using a single Nvidia 3090 machine would generate just over $2 in rewards per day. The miner, however, would pay more for the electricity than the block reward.

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