Iranians Still Profiting From Bitcoin Mining Despite Market Crash and US Sanctions
Iranians are turning to Bitcoin crypto mining due to economic difficulties caused by sanctions by the United States
Despite the recent crash in crypto markets and fluctuations in the national currency caused by reinforced U.S. sanctions, Iranian people are reportedly managing to gain profits from mining Bitcoin.
As reported by AtlanticCouncil, 26-year-old Ali Hossein and his cousin bought a Bitcoin crypto mining device "Antminer S-9" for $526, when the Bitcoin was trading around $6,500.
Despite the U.S. dollar reportedly soaring to an all-time-high of 190,000 against the rial, as well as Bitcoin steadily declining over the past months, they claimed that are not seeing losses yetdue to low electricity prices.
Iran ranks number one globally in energy subsidies. Subsidies increased this year along with oil prices, previous to the crash in crude markets in October. The price of natural gas generally lags behind oil by a few months in international markets.
Moreover, they suggested that the US dollar must drop below 110,000 rials and Bitcoin must be down to $2,000 to really lose. Instead of considering shutting down crypto mining and selling their mining hardware, as some businesses have, Hosseini said that they are even planning to purchase more mining devices, predicting that crypto will inevitably replace fiat money.
While crypto mining was legally accepted as an industry by a number of Iranian state authorities in early September, trading cryptocurrencies is still not legal in the country, as the central bank of Iran banned domestic banks from dealing crypto earlier in 2018.
Some Iranian students in the United Kingdom are using crypto to avoid U.S. sanctions, according to a recent report by The Guardian. Due to the current currency restrictions, some students say that they cannot get money from home in order to pay tuition and as a result, risk being suspended from courses or barred from graduating.
As an attempt to support economic stability in the country, the Iranian government has been considering the launch of its own state-backed cryptocurrency. In late August, Iran’s National Cyberspace Center revealed that the draft of the government-backed crypto project was ready, following the instructions from President of Iran Hassan Rouhani.