- Bitcoin Mining in Iran may reach over $1 billion in revenue
- Iran currently holds accounts for 4.5% of Bitcoin mining.
- Iran-based miners paid directly in Bitcoin.
The regulated mining activities in Iran maybe reach more than $ 1billion in revenues. This may help the country elude economic sanctions inflicted by the United States. The aforementioned report is from the blockchain analytics firm Elliptic.
Moreover, the report noted,
“In the face of these sanctions, Iran has turned to an unlikely solution – Bitcoin mining”
Moreover, Iran currently holds the accounts for 4.5% of the total world Bitcoin mining operation, according to the abstract of the report published in Elliptic.
The report reads, “The US imposes an almost total economic embargo on Iran, including a ban on all Iranian imports and sanctions on Iranian financial institutions”
On a note, Iran recognized that Bitcoin mining is comparatively inexpensive. Notably, China is performing a major role in the country’s expanding crypto economy.
The report says, “Several Chinese businesses have been granted mining licenses and have established operations in the country. These companies have described establishing a good relationship with ‘the army in Iran’, and one particularly large facility in the Rafsanjan Special Economic Zone was reportedly built-in collaboration with a ‘military organization’,”
The Iran-based miners paid directly in Bitcoin, and this can use to pay for imports. Allowing sanctions on payments through Iranian financial institutions to be avoided.
Although, in April Iran passed a law that banking entities can purchase their imports with the help of cryptocurrencies. Followed this, in May the government tries to strengthen its hold on crypto with a law banning the use of foreign-mined BTC for imports.
Bitcoin mining is the process of entering new bitcoins into circulation. Henceforth, Bitcoin and other networks that belong to crypto run on large amounts of electricity. The miners of Bitcoin run power-hungry computers through these new transactions can process and add them to the blockchain. In consideration of, the bitcoin miners rewarded with the bitcoin from gas fees as well as the minting of new bitcoins.
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