3 Major Issues Experienced By Cryptocurency Miners in Iran Today

Cryptocurrency mining has become one of the significant events in Iran these days. The environment around the place is said to be the vital driving force for people to even come from other nations to mine such cryptocurrencies such as bitcoin and others. This gulf state tends to provide cheap and adequate energy that attracts most of the cryptocurrency minors across the world.

However, the latest news shows that Iran has a relationship with cryptocurrency, which is complicated. The cryptocurrency minors in the country are destined to suffer a blow.

  • Building Fears in Cryptocurrency Trading and Mining

Today, there are fears by the cryptocurrency minors in Iran concerning the fact that the state has a feeling that the cryptocurrency which is mined in the county could be used as a way of funneling money out of the nation.

This fear tends to be different from that which is experienced by the American government concerning the fact that majority of the anti-cryptocurrency outbursts are seen to be propelled by the fears of the dollar losing the supremacy it currently holds in the nation. In America, there is a feeling that the dominance of the dollar may be lost to a non-state controlled currency, which is the cryptocurrency.

Therefore, the sanctions which are conducted by the United States to the mining of bitcoin in Iran have been successfully done. As such, America has nothing or very little to lose through the recognition of cryptocurrency merely as a way in which the majority of other states have not yet done as of now. 

Following these sanctions, Iran has acted as if it is missing the trick through the ignorance they have since depicted of failing forecast on the way cryptocurrency could help drive the development agenda of the nation.

Similarly, they have been unable to see cryptocurrency as a way of circumventing the economic sanctions they face day in day out. On the other hand, the crypto miners are suffering in Iran since they leave a threatened life. They are entirely unaware of whether or not their businesses will be running shortly.

Following the closure of a couple of mining companies, the cryptocurrency minors in Iran are living with a lot more fear of the sanctions.  While the Iranian government is looking to stop the United States bans on cryptocurrency, they also fear the same. This has led to a panic among the crypto minors in the nation. They now seek to have the government of Iran block the sanctions and threats made by the United States.

  • Seizing of Cryptocurrency Mining Machines

As reported by the business dailies in Iran, there is a latest unfolding that the Iranian authorities have stopped over 1000 bitcoin mining devices in the country. This followed the reports that the cryptocurrency minors are consuming over half the total amount of power in the country. For a while now, the government of Iran has been blamed so much concerning the deficiency in the power supply in the country. Therefore, when it was discovered that the power consumption which looks extraordinary was from the cryptocurrency firms, the firms were seized and their machines suspended. This is another reason that has led to jitters among the cryptocurrency minors in Iran.

Most of the cryptocurrency minors in Iran have singled out the problem of being tortured by the power cut off, and they suggest that they should have an increase in power charges instead. Last month, as reported by the authorities in the county, there was an increase of over 20 per cent power consumption, which was established to have come from the mining industries. This adds salt to the wound which had been created to the minors in 2018 when they were declared to be working under a nationwide ban even though the activity is legitimized in Iran.

  • Prevention of some Banks from Dealing with Cryptocurrency

Another issue that is faced by the cryptocurrency minors in Iran is the banning of some banks from operating using the cryptocurrency. Following the fears of money laundering by the children, the central bank of Iran made it clear in 2018 that all the banks be barred from operating with the cryptocurrency.  Therefore, as of now, the cryptocurrency minors are in a grey area and stranded on how to make a living out of the tempting business.

The Bottom Line

While Iran had been seen as one of the best conditions to harbor cryptocurrency minors, the situation seems to have changed lately. There is a dilemma concerning the issue of cryptocurrency, and many children are seeking to sit with the government concerning the conditions at hand. The united states are also out with the sanctions to end and block the activities of the minors hence complicating the situation even further. However, some cryptocurrency miners and citizens of Iran in general still have the belief that cryptocurrency mining and trading could be the solution to help in mitigating the global sanctions which are placed on the nation.