Bitcoin mining is a profitable business. Especially in oil-rich countries. Where electricity is cheap. Combine that with economic sanctions and it becomes no mystery why Bitcoin mining is huge in Iran.
Iranians have reportedly set up mining rigs everywhere. From mosques to farms. And taking advantage of the countries’ cheap electricity. And the fact that Bitcoin is a decentralized monetary system. Meaning banking and monetary sanctions are irrelevant. The true reason why Bitcoin exists. And why it’s gaining popularity and adoption there. Bitcoin doesn’t discriminate. And Bitcoin doesn’t stop. For anyone or anything. Regime resistant and transcending all politics. Furthermore, mining simply makes financial sense. To illustrate take the average Iranian salary of $10 000 per year. You need only 1 Bitcoin ASIC miner generating $30 per day to generate the same profit as your salary. Furthermore have 2 ASIC miners and your income is tripled.
Government Bitcoin mining equipment seizures
The Iranian government is blaming Bitcoin mining for the countries blackouts. And it has now seized 45 000 ASIC machines. The seizures of course happened after Bitcoin’s price increase to over $35 000. Suddenly the government has the equipment to mine $900 000. Each and every day. Also, consider that the current price will not remain the same. It might fall, of course, but every Bitcoin metric points to the price rising in the near future. Iranians reject the government’s excuse to seize their mining machines. They say that the country has had blackouts for a long time. And that Bitcoin mining practices don’t actually use that much electricity. Yet blackouts happen. Some blame the countries aging energy distribution infrastructure. Which they say costs as much energy as all Bitcoin mining in the country. This is according to Ziya Sadr who spoke with the Washington Post. A cryptocurrency researcher in Tehran.
Why the Iranian state might become extremely wealthy.
Bitcoin’s market cap is $50 Billion more than Iran’s GDP. Making Bitcoin a perfect asset for the regime. Super valuable and needs to banks to work. In addition, we can use previous halving data to predict Bitcoin’s price. If Bitcoin has the same returns as the previous halving the price is expected to blast past $100 000 and even $200 000. And that will make the profits from the 45 000 miners grow 5 times! Or $4 500 000 per day roughly. Additionally, keep in mind the Bitcoin mining difficulty. With the trade war, we have now with China. And the Chinese government limiting the West’s access to ASIC machines. Mining difficulty might go down and Iran will benefit from it.
#Bitcoin after the Halving
Jan. 18, 2021
251 days after the 3rd halving.#BTC at $36,330.
Bitcoin is in the zone. 📈🧐👍 pic.twitter.com/rLOQ5e1X9A
— ecoinometrics (@ecoinometrics) January 18, 2021
To read exactly why Bitcoin might go to $200 000 this year consider clicking here.
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Disclosure: The author has a position in Bitcoin.