Bitcoin Miners in China Face Difficulties When Seeking for Cheaper Energy Costs in Iran
China currently has the largest number of cryptocurrency miners in the whole world. However, the Chinese authorities do not like them very much. Miners are often seen as undesirable or troublesome, which is a part of why so many miners decided to move away and go to Iran, a country which also has a very cheap electric energy.
This happened last year when China decided to crack down on miners. According to Feng Liu, which was interviewed by the Chinese media outlet 8BTC News, many Chinese crypto miners decided to go to Iran because they had to pay less than $0.006 USD for kilowatt-hour there.
He said that the Iranian government helps companies who want to invest in local power plants and even supplies them with free natural gas for five years. Labor costs, he affirmed, are quite cheap in the country.
Iran Likes Power Plants, Do Not Like Miners
The Iranian government doesn’t like miners and it is not dumb. They know that by giving so much energy for free, they could attract miners, which is why they make regular border checks and apprehend all crypto miners from entering the country. This means that if you have mining equipment, it will be apprehended as soon as you enter Iran.
Liu was only able to import 3,000 T9 miners last year because he “had the help of several friendly border agents”, which is a friendly way to say that he bribed them to lie to their bosses. He affirmed that the risk of losing your equipment is high and that over 40,000 models have been apprehended so far at the border.
Another relevant issue faced by Liu is that the energy power plants are very “greedy intermediaries”, he affirmed. They want a huge chunk of the profits for mining in the country, something that was not so common in China.
He initially made a deal with a company that wanted to split profits 70/30 but two months later decided that it wanted 50/50 and doubled the price of the electricity.
One of the only ways to mine in Iran in a legal way is to use the cloud computing industrial park that was created by the government, as investors pay for refundable energy and can use this industrial park, which a solution for small and medium-sized miners who want to profit. The government is definitely friendlier with them.
Iran Doesn't Want The Miners and Neither Does China
Going back home is not the best idea since China also hates miners. One of the main reasons why the government is so pissed with the miners is because several of them steal electricity to mine or have started mining scams. All of this has prompted the government into simply deciding that they would crack down on miners and caused their exodus last year.
Now, there are reports that the government of China is intending to get even harsher with mining and to consider all mining illegal, not only a handful of them. This could have a very strong impact on the market since more than half of the mining in the world is made in the country. Let’s follow the situation and discover what will happen.