Bitcoin is a very unique form of money which is often misunderstood. Especially when it comes to mining cryptocurrencies, there are a fair few misconceptions. In Iran, the mining of cryptocurrency has turned into a political debate. Despite there not being any official law prohibiting this industry, several hundred miners were confiscated this week.
A Further Bitcoin Mining Crackdown in Iran
It is very interesting to keep an eye on the current cryptocurrency climate in Iran. As the country is trying to note economic growth, the task ahead has proven to be a steep uphill battle. It is not entirely abnormal to see consumers and even companies flock to alternative solutions. Because of the state-sponsored electricity in the country, Bitcoin mining has become a lot more popular in recent years.
Unfortunately, it would appear that the situation will come to an end fairly soon. In recent months, it has become apparent some politicians do not take kindly to this profitable business model. That situation has now escalated, as nearly 1,000 Bitcoin miners have been confiscated. Two cryptocurrency mining farms were identified and shut down in very quick succession.
As is often the case where Bitcoin mining is concerned, the massive spike in electricity consumption triggered some alarm bells. Both of these mining firms consumed over one megawatt, which is well above the normal threshold in the country. While not illegal by any means, the current political tension warrants such harsh actions by the proper authorities.
It is unclear if anyone associated with these ventures has been arrested, and if so, which charges they may face in the process. Iran has no official law which prevents anyone from mining cryptocurrencies, but there are other factors at play as well. The geo-political tensions between Iran and the US is creating a lot of strain on the country’s economy. Finding proper wealth storage solutions is a big problem, thus the increasing interest in Bitcoin makes sense in that regard.
Additionally, it is not the first time Bitcoin mining operations are punished. While the confiscation of hardware is rather unusual – unless one lives in Venezuela or its neighboring countries – it is not uncommon for these projects to face high electricity charges or even a power consumption limit. This is a very common tactic in regions where one can find cheaper electricity, either due to renewable energy sources or otherwise.
This entire story puts an interesting spin on the cryptocurrency mining industry. Especially now that the prices are all heading into a higher range again at certain intervals, the overall interest in Bitcoin and altcoins may not diminish. While mining cryptocurrencies is an option, it is hardly ever profitable without access to cheap electricity. By the look of things, Iran has now become another country where the mining of cryptocurrencies will not become a big business anytime soon.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.
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by JP Buntinx via The Merkle Hash
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