The effects of US sanctions appear to be taking a toll on many Iranians. But they have adopted a way of cushioning such effects. The only way is to turn to Bitcoin mining. Iran is right in the middle of an economic crisis. The government of this Middle East state has had its hands full with so many things. But the most important one is ensuring that the economy is afloat. These are all due to the hiccups caused by the US sanctions sometimes back.
Bitcoin Mining Is The Only Solution
As a result of all the sanctions, Iranians are literally taking things into their own hands. The citizens of this Islamic state had earlier began using the cryptos with the rest of the world. Bitcoin, for a long time, has been used in Iran for a number of transactions. And now, they have turned to Bitcoin mining as a way of making a livelihood. But people have questioned the sustainability of this new strategy. This is due to the dire state of the cryptocurrency market at the moment. All over the world, the crypto markets have been greatly affected by the bear market. And due to the slump in prices, mining the cryptos is now less profitable than ever.
Effects Of The Sanctions
The imposed sanctions by the US greatly affected the Iranian economy. But there are some that were, perhaps, bigger than others. Iran-based commercial banks were removed from SWIFT – the Society for Worldwide Interbank Financial Telecommunication network. That was probably the biggest negative that came from the sanction. This had a direct implication. The Iranian Central Bank was expelled from the rest of the world. This made it completely impossible got retail banks to process transactions with other financial bodies. The Iranians abroad have also been stranded since the sanction was imposed. A lot of Iranians have resorted to crypto mining as a result of all that. This is the only way they can transact and earn a living.
New Way Of Making Profit Out Of The Iran Crypto Mining
Even with the bear market, Iranians have found a way of mining the cryptos. Therefore, they are slowly making profit from it. The story of Pedram Ghesemi and Ali Hosseini is a perfect example. These two cousins purchased an Antminer S9 at $526 some few months ago. Bitcoin had gone for $6,500 at this particular time. The price has since crushed to $3,200 as witnessed this month. The cousins have disclosed that they pay so little for the electricity. This is one of the reasons why they have remained in the business. This can be attributed to the large subsidies for energy present in Iran.
This is the reason for the huge influx of cryptocurrency miners in Iran. Crypto mining has also remained legal in this Islamic state. This is despite the absence of any kind of regulatory framework in the whole market. But the US sanctions could make other things more complicated. Things such as finding outside liquidity for cryptocurrency trading.