According to a report on the Atlantic Council, Iran is now in the crisis of economic. Iran is located in the floating stage in its economy, as the sanctions by United States government have been paused few days back which lead Iran citizens to look after the issues on their own. For the means of making ends meet, they have now turned to Bitcoin, where the rest of the world started utilizing cryptocurrency for transactions.
Iranian economy has been affected in many ways due to impose of U.S. sanction. One of the major causes was that, Iran-based commercial banks kicked out of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network. The exclusion of the Iranian Central Bank from the rest the world made them not to have any possibilities to process transactions for retail banks, or conduct any form of business with financial institutions in other countries.
Some of the Iranians abroad have been stranded at the time of imposed sanctions. A lot of Iranians have turned to cryptocurrency mining, as a means of assuring that they are still allowed to transact and earn a living. Considering the poor quality of the crypto market right now, they were also put forward with a question of the sustainability of this new strategy. With the fall in prices making it less profitable to mine cryptos, the bear market has also affected crypto markets all over the world.
Profitable Iranian Mining Credited by Energy Subsidies
In order to make some money despite the bear market, a way to mine digital assets has been founded by Iranians. For instance can have the story of the cousins Ali Hosseini and Pedram Ghesemi, who bought S9, a crypto mining rig, for $526 some months back, at a time when Bitcoin went for $6,500. This month, saw the price crash to as low as $3,200, but it has recover a bit to $3,758.58.They claim they are still floating because to power their crypto mining, they pay very low for electricity in Iran.
Cryptocurrency mining remains legal in Iran, as there was no regulatory framework on any form. The large crypto exchange Binance warned Iranians investors to withdraw their funds from the platform, Iranian investors would find more difficult to find out liquidity for crypto trading, as it seeks to comply with the sanctions from Washington which is followed by the enforcement of the U.S, sanctions This is thanks to the large subsidies for energy in Iran; a fact that has directly been responsible for a massive influx of crypto miners to Iran.