Sanctions-Hit Iranians Seek Economic Alternative in Crypto Mining

Iranians are looking towards crypto mining to soften the economic blow caused by recent unilateral US sanctions.

Dwindling economy

Since the recent US sanctions have come into force against the Persian nation, the Iranian government is mostly involved in keeping the economy together to avoid a total collapse. The fresh sanctions have effectively cut off the country’s banking system from the rest of the world. Inflation is at an all-time high and residents have been seeking alternative means to income generation.

The banking sanctions are perhaps the most hard-hitting ones to Iran. Being financially isolated, the most affected are Iranians living abroad, especially young students who now do not have access to money from their homes and are unable to afford tuitions. One of the only ways Iranians can now get money in and out of the country is through cryptocurrencies; demand for Bitcoin in Iran is growing as they can easily obtain, transfer and convert it to traditional currency.

And now, apparently, local residents have also turned their eyes towards mining, with the hopes of generating alternative income from the generation of new Bitcoin.

Profitable Mining

The recent cryptocurrency market crash has made mining a very tough business globally. Many mining operations all over the world have shut down since falling prices mean that mining is not profitable anymore. Iran, however, is a different story altogether.

The news of two Iranian cousins has been making rounds lately. Pedram Ghesemi and Ali Hosseini acquired an Antminer S9 crypto mining rig a few months back and started their mining operations.

The cousins claim that prevailing low prices have affected mining profitability but they are still in the black. This is due to the fact that Iran gives heavy subsidies to its residents in the energy sector and thus the cousins, even with a single mining rig, are able to generate profit.

The Iranian government is also looking into starting a state-backed cryptocurrency to circumvent banking sanctions by the US.

 

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