It should be noted that recently El Salvador has accepted bitcoin as legal tender. Although the US dollar will continue to be used in the country, Salvador has become the first country to accept bitcoin as legal tender. This indicates that the future holds immense potential for the cryptocurrency market. Till the time of writing the news on June 11 bitcoin price in india 27.2 lakh Rs.
The US has imposed CAATSA, a law combating America’s opponents through the Sanctions Act on Iran. It no longer allows US companies to do business with approved entities. However, economic sanctions put Iran in a position as companies affiliated with the West are bound to reject it, creating a ripple effect that severely affects Iran’s international trade.
Now Iran has taken an initiative again. The country is largely isolated from the global banking system due to restrictions on trade through the US dollar. Iran has warmly welcomed the cryptocurrency revolution even under such extreme circumstances. According to a study by Elliptic, Iran’s bitcoin hash rate is 4.5 percent. The bitcoin hash rate is simply a measure of the good and bad state of the network. Higher hash rate means more processing power exists inside the network. For example, China leads with a hash rate of 55 percent and the US comes second with a hash rate of 11 percent.
Thousands of computer machines work day and night on complex equations during bitcoin mining, greatly increasing the energy consumption in the process. Two years ago Chinese miners were largely encouraged to set up in Iran because electricity was cheap there. Iran has licensed 50 bitcoin mining companies since July 2020. But it didn’t last long. The electricity crisis in Iran has started deepening due to bitcoin mining. Unplanned blackouts started happening in the country and that is why the Iranian government in May this year imposed an outright ban on bitcoin mining for four months. But despite this, reports say that this mining is still going on in Awadh.
President Rouhani said that companies mining cryptocurrencies illegally are consuming 6 to 7 times more electricity. Iran ranks fourth in the world in terms of oil storage. But due to economic class they are not able to avail it. Therefore, this energy was used by the country for bitcoin mining.