Iranian power plants to mine for Bitcoin

31 Jul 2020

Iran has confirmed that it will now permit major power plants to mine Bitcoin.

In a statement to the Islamic Republic News Agency (IRNA), Mostafa Rajabi Mashhadi, a Deputy Managing Director at Tavanir, Iran's Power Generation, Transmission and Distribution Management Company, said power plants in the country could operate as Bitcoin mines “if they comply with approved tariffs” and have the necessary licenses.

Mr Mashhadi said that any power plant considering such a venture could not use subsidised fuel for crypto mining.

“Now we’re in a situation where the supply of electricity is of great importance to the public,” the energy spokesman said. “We will not allow anyone to misuse tariffs provided for the agricultural and industrial sectors to produce Bitcoin while it’s worth more than $9,000.”

The move comes as many experts believe that Bitcoin mining is headed for a major shift.

RRMine Global CEO, Steve Tsou, said at a Cointelegraph event that “the future of crypto mining will transit from labour-intensive companies to technology-intensive and capital-intensive companies.” 

As the news site reported, Mr Tsou noted: “Therefore, as a new infrastructure industry in the new market, computing power will play the role of "engine" in the digital economy and will grow rapidly. This is a vast blue ocean market, which can accommodate multi-dimensional competition. 

“Both enterprises and individuals can develop their strengths in capital, technology, supply chain, resources, market and other aspects according to their own advantages, playing a role in the appropriate track to join the trend of the time.”

Bitcoin mining is the process by which new Bitcoins are entered into circulation, and it is also a critical component of the maintenance of the blockchain, the technology which underpins it.