How Iran is bypassing sanctions through mining?
The potential for using Blockchain is almost limitless. New areas of application of modern protocols appear every day, including due to the urgent need for representatives of certain regions. For example, let’s look at Iran. This country occupies a leading position in terms of interest in the crypto industry. And today it became known that local experts have learned to use mining to bypass the bans and sanctions of the Western world. Below we will tell you everything that is known about this bold scheme. So let’s get started.
How the scheme was revealed
First, we note that Iran is indeed extremely responsive to digital assets. This is evidenced by statistics, which show that about 4.5% of all Bitcoins are mined in this country. Several factors are at play. The first of which is a rather low standard of living. The richest country is not able to provide a decent wage for each of its citizens, and therefore many enterprising entrepreneurs sell their businesses and invest in the extraction of digital assets. Ordinary citizens do the same. Iranians are saving money and investing in equipment.
In addition, many locals are interested in cryptocurrencies due to fear of default. Iran can declare itself bankrupt, as a result of which all savings of citizens will become invalid. Therefore, an alternative source of savings comes to the rescue – BTC. Thanks to the combination of these nuances, the average amount of electricity consumed by Iranian miners is as much as 600 MW. This is a huge indicator.
And miners see in their work a way to additionally earn a reliable asset – the US dollar. After all, commissions are paid for mining, including by US citizens. Thus, the Iranians can receive a reliable American dollar, which is subsequently used to purchase goods from abroad and additional equipment for the extraction of digital assets. Analysts at Eliptic are behind the investigation of this bizarre scheme. Representatives of the organization note that, technically, miners are not doing anything illegal, but they do bypass the sanctions. Why is this event an indicator and important in the context of the entire digital industry? Let’s tell you now.
The global significance of events in Iran
The Eastern miners’ approach shows that blockchain is not at all about division into borders, races and other symbols of populations. Blockchain allows people from two warring states to communicate, conduct market relations and exist within a completely different nature. Digital and modern. This is a great illustration of how advanced technology can circumvent archaic government bans. And mining is a great way to face the future with confidence, even if you are a citizen of a country that is not the most stable.
Eliptic statistics show that Iranian miners earn about $ 1 billion a year. Let’s clarify that the GDP of the entire state is only $ 11 billion. So the numbers that come from mining cryptocurrencies are really impressive. This type of activity is recognized as industrial production. The Iranian government openly licenses mining companies and single miners of digital assets. Thus, digital means become an outlet, a window to the advanced world for all Iranians.
We are sure that this is far from the most interesting way to use Blockchain. For all the latest news related to the digital industry and next generation currencies, stay with us. We publish only high-quality, interesting material. Thanks for attention. Good luck!