Billion dollar bitcoin mining industry continues to return after three month ban in Iran

After a three-month ban passed by former President Hassan Rouhani on Jan. bitcoin

The ban was initially enacted amid concerns about the stability of the country’s unreliable power grid.

The Middle Eastern country experienced widespread power outages during the summer, which former President Rouhani attributed to extreme heat. On some days, temperatures reach 120 degrees Fahrenheit or almost 49 degrees Celsius.

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Due to power outages and water shortages, Rouhani has decided to ban cryptocurrency mining during the heat waves to ensure citizens can keep their air conditioners running – although some circles have expressed doubts about how much energy mining cryptocurrencies in the country actually consumes . When the heat subsided and Ebrahim Raisi took office as president on August 3, 2021, the crypto mining ban was lifted.

An estimated 4.5% to 7% of the world’s cryptocurrency mining takes place in Iran. It may come as no surprise that Iran has some of the cheapest electricity in the world thanks to its abundant fossil fuel resources like natural gas.

There have been some reports that the country is consenting to bitcoin mining as a way to bypass sanctions from the United States. Iran is currently subject to an almost complete US embargo, which is having a negative impact on its economy. At the current estimated level of mining in Iran, Elliptic’s estimated revenue through Reuters is around $ 1 billion.

Underground mining is set to continue despite the ban, and it was revealed on Wednesday that Ali Sahraee, the director of the Tehran Stock Exchange (TSE), had resigned after the ban.

The TSE leadership first denied the existence of the mining operation, but then Vice Chairman Beheshti-Sarsht admitted that the TSE was responsible for the activity.