Iran’s economy is certainly not going well right now. Due to difficulties caused by the U. S. sanctions, the country has been finding it difficult to keep its economy afloat these days. Because of this, many Iranians are turning to Bitcoin.
However, the prices of the market are very bad right now. The crypto market crash has affected the market of the whole world and turned mining profits down. However, people are still being able to mine and get some money in Iran.
The story of Ali Hosseini and his cousin Pedram Ghesemi, which was originally reported by the Atlantic Council, is quite interesting. They bought an Antminer S9 two months ago for around $526 USD. At the time, the price of Bitcoin was around $6,500 USD, now it is below $4,000 USD.
Both cousins claimed that the electricity that they pay is very low so they are not seeing losses just yet. This happened because Iran is one of the countries in the whole world with one of the largest energy subsidies, which constitutes more than 10% of the annual GDP of Iran.
This year, the subsidies have increased together with the oil prices and the price of natural gas, generally used as the main fuel for generating electricity in the country, has seen its price lag behind in international markets.
All this creates a situation in which the cousins will only be affected and actually start to lose money if the price of Bitcoin goes down beyond $2,000 or if the USD drops a lot, which does not look like it will happen. Despite all the international sanctions or, quite frankly, precisely because of them, Bitcoin mining is still very profitable in Iran.
The cousins affirm that they are not abandoning Bitcoin mining and that, in fact, they are thinking about actually purchasing even more mining devices, as they are strong crypto believers and they think that Bitcoin will replace fiat in the future.
Crypto Mining And Iran
Cryptocurrency mining is legally accepted in the country, but it is not regulated. Quite curiously, crypto trading is currently illegal, so only mining is actually allowed. Some Iranian people, including students abroad, are using cryptocurrencies to avoid U. S. sanctions, according to reports.
This creates a problem for many migrants and people who are away from the country because they are blocked from using the financial system because the government of the United States has decided to use these sanctions.