Crypto mining in Iran has proved to be extremely popular due to the country’s meager electricity costs. Crypto mining, when you get down to it, turns a profit if the electric bill is lower than the value of the amount of crypto you mined. The lower the electric bill, the higher the profit. In the latest development of Iran trying to rein in rampant illegal mining, the country’s Ministry of Industries, Mining and Trade issued out over 1000 licenses. These licenses are focused on cryptocurrency mining units, according to reports.
Massive Potential Income
As it stands now, only a fraction of the mining operations is now officially sanctioned by the country’s government.
An official from Iran’s ICT Guild Organization, one Amir Hossein Saeedi Naeini, interviewed with IBENA news. Within this interview, he explained that many people in Iran are attracted to the idea of crypto mining as a whole. With this widespread interest, Naeini told that his firm’s studies show a potential market of $8.5 billion, something that would give Iran’s economy an incredible boost.
Developing on this thought, he further suggested that modifying the electricity rates would also boost the country’s crypto mining industry, which would further generate revenue.
Naeini pushed the narrative of crypto, helping Iran’s economy even further. He explained potential investors are mainly leaving Iran due to the fact that neighboring countries offer incentive programs for crypto mining. With this in mind, Naeini suggests that Iran should take this as a guide and further support the country’s smaller investors. With the high tariff rates and strict regulations, Iran has rendered its crypto mining industry only worth the time of powerful investors that can scale up to gain a profit.
Fine Line Between Profitable And Useless
The ICT Guild Organization had recently criticized the Iranian government due to these exact tariffs. In short, the group described it as “irrationally high power rates” for miners authorized by the state. The group advocated that the taxation was too high for businesses to deem it a viable venture, which will push money out of the country. The Energy Ministry, in turn, responded that it had revised its tariffs once more, basing it on seasonal power consumption. With this, the country will have a ‘winter’ period where the crypto mining industry will die down due to costs. Somewhat ironically, this ‘winter’ will happen in the hottest months of the country.