According to a Reuters report, the Iranian government has seized 7,000 computer miners at an unauthorized cryptocurrency farm. The report records that this is the largest haul, happening barely a month after the government banned crypto mining. In late May, Iranian authorities restricted mining for four months to cut down on power blackouts over the summer.
A blockchain analytics firm, Elliptic, reports that about 4.5% of all BTC mining happens in Iran. The mining generates millions of dollars in revenue that could help to protect them from the impact of U.S. injunctions.
Mining is the process used to create BTC and several other cryptocurrencies. During this process, strong computers battle to solve complex mathematical problems. The mining process relies on electricity created from fossil fuels and is remarkably energy-intensive.
Recently, Iran accepted crypto mining by providing electricity at a cheap rate and then demanded that miners sell their BTC to the central bank. Tehran, Iran’s capital, currently recognizes cryptocurrencies mined in the country as a form of payment for imports of authorized goods.
Miners, especially from China, are now attracted to Iran with the anticipation of getting state-subsidized electricity. Elliptic reports that the electricity miners use requires nearly 10 million barrels of crude oil in a year, about 4% of Iran’s oil export in 2020.
Image Credits: Pixabay
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