Iran blames USA for blocking Bitcoin mining

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Iran blames USA for blocking Bitcoin mining

Saeed Zarandi, Deputy Industry, Trade and Supply Minister in Iran, accuses the US of planning to block Bitcoin mining in Iran. According to local media, the Iranian minister blames the White House.

Due to the very low cost of electricity, Iran is a paradise for cryptocurrency miners. Research conducted by Global Petros Price indicates, that the cost of 1 kWh is on average $0.14 in the US, while Iranians pay only $0.03 for this amount of energy, due to government subsidies. Due to the increasing activity of cryptocurrency mining, energy consumption exceeded production capacity. For this reason, at the end of June 2019, the Iranian government banned mining operations until new electricity prices were approved.

The sanctions imposed by the US violate the Iranian economy

After Donald Trump resigned from the nuclear settlement last year, the Iranian economy was severely hurt by re-imposing US sanctions. Since then, the value of the Iranian currency has dropped to a record low. Rial lost 60% of its value against the US dollar. This led to shortages of imported goods and products. According to the latest reports, Iran's GDP has shrunk by 3.9%. In addition, the White House abolished the sanctions exemption for eight countries that buy oil from Iran. As a result of these decisions, oil exports significantly decreased. It is also worth mentioning that over 8 months ago, the USA had removed Iranian commercial banks from the SWFT network - an international platform for the exchange of data between various financial institutions. Saeed Zarandi assumes that the US government is currently focusing on eliminating all means to bypass financial sanctions.

USA - China Trade War

Local media indicate that Iran can be a pawn in the war between China and the US. Iranian Communications and Information Technology Minister, Mohammed Javad Azari Jahromi, during his speech on local television, stressed that the Chinese private sector has moved to Iran to take advantage of cheap electricity.
Before Iran became attractive to cryptocurrency miners, China dominated in the area of Bitcoin mining - adds Jahromi.