Mumbai. Iran’s economy is being negatively impacted by US business sanctions. A study has revealed that about 4.5 percent of Bitcoin is mined in Iran, giving it hundreds of millions of dollars in cryptocurrencies.
Mumbai. Iran’s economy is being negatively impacted by US business sanctions. A study has revealed that about 4.5 percent of Bitcoin is mined in Iran, giving it hundreds of millions of dollars in cryptocurrencies. They can be used to pay import bills. This may reduce the impact of US sanctions. Mining in Iran enjoys industry status.
According to a study by the blockchain analytics firm Elliptic, the level of mining in Iran at the moment, Iran will have a bitcoin production of around $ 100 million (Rs 7291 crore) annually. The US has imposed a complete economic embargo on Iran, including oil, banking and shipping sectors. Iran has plenty of energy required for mining
It is difficult to give a very accurate figure on how much Iran will earn from bitcoin. Elliptic based this on data collected by Miners by Cambridge Centers for Alternative Finance until April 2020, and information on electricity consumption by Minors in January 2021 by the Iranian Government Power Generation Company.
In January 2021, 600 MW of electricity was consumed by minors. Bitcoin and other cryptocurrencies are created through mining called mining. In this process powerful computers compete to suggest complex mathematical problems. Mining requires a lot of energy and is mainly dependent on electricity generated from fossil fuels. Iran has an abundance of fossil fuels. Fast growing crypto industry in Iran
Iran’s central bank has banned trading in other cryptocurrencies including mined bitcoin in other countries, but according to local media reports it is widely available in the black market. Although Iran has officially recognized crypto mining as an industry for the past few years. For this, power is also being provided at cheaper rates.
In addition, Iran’s mining industry also needs minors who can mine bitcoins and sell them to the central bank. Minors have attracted Iran from many countries, including China, due to cheap electricity. Authorized import payments have been approved from mined cryptocurrencies in Iran. It takes many times more electricity than crude oil production to make cryptocurrency
According to the study, Iran has identified a better opportunity in bitcoin mining for an economy that is facing sanctions, which has a shortage of hard cash but is high in oil and natural gas. According to the study, miners in Iran will use the same amount of electricity required to produce 10 million barrels of crude oil in a year, which is 4 percent of Iran’s total exports in the year 2020.
