Re:Kosovo bans cryptocurrency mining to save electricity
by mytailorisrich on Wednesday January 05, 2022 @09:21AM
(#29809236)
Yes, by country under sanctions I meant Iran.
You don't make your economy more effective by having incentives to remain ineffective. This sort of arbitrage (crypto-mining) is a direct consequence of misguided subsidies: If electricity is essentially free you have no incentive to control your electricity consumption and that attracts heavy users, which pushes consumption up in a vicious circle and can lead to shortages.
Iran has oil so they can probably afford to keep energy prices very low but that does not help them over the long term.
A ban on crypto-mining is also very difficult to enforce, IMHO.
You don't make your economy more effective by having incentives to remain ineffective. This sort of arbitrage (crypto-mining) is a direct consequence of misguided subsidies: If electricity is essentially free you have no incentive to control your electricity consumption and that attracts heavy users, which pushes consumption up in a vicious circle and can lead to shortages.
Iran has oil so they can probably afford to keep energy prices very low but that does not help them over the long term.
A ban on crypto-mining is also very difficult to enforce, IMHO.