With this announcement, thousands of local and international cryptocurrency miners are preparing to resume work in Iran, which is one of the most attractive countries in the world.
This comes as Iran provides electric power at relatively cheap prices and many facilities, indifferent to the environmental impacts of this mining process, as it provides all these facilities in order to benefit from the mining process, to circumvent the international sanctions imposed on it.
Iran is the most active in the world
Iran was one of the countries in the world very active in the field of mining. Although its population does not exceed 1 percent of the total world population, 4.5 percent of cryptocurrency mining operations were carried out inside Iran.
And last May, the Iranian authorities suspended licenses for currency mining, due to the huge faltering in the levels of electricity delivery, which reached the extent of interruption for whole days in neighborhoods of the capital, Tehran.
It is known that mining operations require large electrical energy, which consumes a large part of what is produced by the national energy network, especially the most famous and attractive bitcoin currency in Iran, as studies say that mining it needs 707 kilowatts per hour.
Mining operations consumed 10 percent of the country’s electricity.
Billion dollar
Iran began granting licenses and allowing miners to work since 2019, at the height of the sanctions imposed by the previous US administration on Tehran, as oil exports fell to about 20%, which made up about 70% of the revenues of the public treasury, so the country is looking for other sources of financing its budget.
A study published by Blockchain Elliptic, a financial analytics company, said that a similar deal has taken place between the Iranian authorities and the miners, the first benefiting from the taxes imposed on thousands of miners (estimated at about one billion dollars in 2020).
Also, cryptocurrencies provide a hard currency, with which the ruling regime can cover its imports of materials from abroad, at a time when the country was suffering from a great shortage of global currencies.
And the second category, that miners, in turn, were benefiting from the low prices of electric energy in Iran, as the state produces it from natural gas that it extracts in large quantities at the global level. environment conditions on them.
“Most likely, Iran will increase its cryptocurrency mining operations during the next six months, for three objective factors,” Randa Nasr El-Din, an expert in cryptocurrency affairs, told Sky News Arabia.
She explains, “There is a major migration of mining operations in China, in which nearly 60 percent of the global mining process was taking place, after the Chinese authorities imposed a number of environmental conditions on miners, who were using coal for the energy needed for mining, which enhances the presence of Iran”.
She added, “The Iranian regime is in urgent need of large amounts of global currencies, which may be provided by mining operations. Finally, because the autumn and winter seasons are the least spending on electricity in Iran, observers’ expectations go to believe that Iran’s contribution may rise from 4.5 percent to 10 percent within one year.” .
Nasr El-Din continues: “The Iranian authorities are currently concerned that monetary and financial institutions in the world, especially in the United States, will seek to develop their legal and economic structures and control mechanisms on the digital currency market, to be able to impose sanctions on some countries and regimes in the future. Without a doubt, Iran will be on top of that list.
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source https://pledgetimes.com/iran-lifts-ban-on-cryptocurrency-mining-whats-the-story/
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