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In the one hand, the Bitcoin spot market has been surging, while the mining industry in some regions has been stifled. Iran’s biggest Bitcoin mining site, which had been closed for four months, got positive news today when it was able to reopen.
According to sources, the mining farm in Rafsanjan in the Kerman province of Southeast Iran has been able to restart operations months after it ran into difficulties due to substantial financial support provided by Chinese backers.
The mining company was ordered closed in January, during a period of increased electricity blackouts in the region. This was attributed to the mining facility’s high energy use, which amounted to nearly 175 megawatt-hours. This accounted for almost one-third of the overall power allotted to tall mining activities in Iran.
Despite the fact that the news was a boost for the crypto-community and the company itself, many people are worried about the business resuming operations because they think no attempts were made to alleviate the energy blackout issues.
Meanwhile, the Rafsanjan mining activity will be added to Iran’s Southeast Special Economic Zone’s long list of Chinese-backed Bitcoin mining operations. More capital is pouring into mining in other countries from China’s largest crypto-mining facilitators. This money entering the world, however, may be part of its “25-year contract.”
While some claim that China has cornered the global mining market, it has also saved many facilities to hold mining rigs operational. While the Rafsanjan facility must be in good working order right now, it will have to address the air pollution issues caused by mining in major cities.