• Thu. Apr 18th, 2024

Current Situation of Bitcoin (BTC) in Iran

Jan 24, 2021

In the past couple of months, Iran has been facing a lot of power outages in all of its major cities. It has been confirmed by the Government of Iran that the main reason behind the mass power outages is Bitcoin (BTC) mining.

In the past couple of years, the Bitcoin (BTC) mining industry has even reached the Iranian soil. There are now several people in Iran who are trying to make a living from Bitcoin (BTC) mining. However, due to mass bitcoin mining, the country is facing a lot of electricity crisis. This is because the Bitcoin (BTC) mining rigs utilize a lot of electricity in order to process calculations and mine coins.

Now that Iran has run short on high-quality natural gas reserves, the country has resorted to low-quality fuel oil in order to generate energy. Even then the country has been facing a lot of issues with respect to electricity and now there is the problem of air pollution. The chemicals being released from the fuel oil-burning power plants have started to cover major cities.

Amid all these crises, the Government of Iran has started cracking down on the Bitcoin mining industry in the country. So far, the Iranian police has carried out several raids in order to pull the plug on the Bitcoin mining centers.

Similar to Pakistan, Iran has also joined the cryptocurrency mining industry from the Western Asia region. It has been established that Bitcoin (BTC) mining is a very profitable process in Iran due to the low electricity prices. Most importantly, the Government of Iran had given approval for mining Bitcoin (BTC) in the country.

When the Iranian Government had given an approval back in 2020, Bitcoin (BTC) mining was dubbed as an industrial activity for the power plants.

According to recent reports, there are currently more than 1,000 cryptocurrency mining entities that are involved in crypto-mining activities. These entities are approved by the Government to perform cryptocurrency mining so there are no problems for them so far.

It has been revealed that since the last month, Iran has raided and taken out more than 1,000 farms that were illegally carrying out mining activities. There have been several occurrences where the spot prices for Bitcoin (BTC) have been mispriced as compared to the rest of the world.

The main reason behind that is because of the high demand that Bitcoin (BTC) has in Iran due to the rapidly growing inflation rate.

Although Iran is now doing better with the Bitcoin (BTC) industry in the country, yet it has started facing major issues. One of the major issues is the power outages that the country is currently facing and aims to fix at the earliest. However, given Iran’s current situation and its relations with major economic countries, it may have to take out Bitcoin (BTC) mining.

It needs to do it until it is able to figure the electricity production problem.

Don't Miss Out On Bitcoin Evolution!

The Top Bitcoin and Cryptocurrency Price Prediction Software / Trading Robot

Sign Up

Try Crypto Engine With a Trusted Broker