To the delight of crypto enthusiasts in Iran and all over the world, the Bitcoin mining industry will now resume operations in Iran.
The billion-dollar BTC mining industry faced some challenges in the country, which led to the banning of operations by the former president.
However, after carefully analyzing the situation and considering the major factors, the ban has been lifted after three months. Bitcoin is the most popular cryptocurrency in the world and is currently trading at $43,971 (at the time of writing). The digital asset has been struggling to touch the $50,000 price mark, which will soon be seen according to the enthusiasts.
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Why Was the Ban Implemented and Lifted?
On May 26th, 2021, the former President of Iran, Hassan Rouhani banned mining operations in the country. The ban was three months long and was imposed due to concerns regarding the effects of mining on the unstable power grid of the country.
This ban was imposed, specifically while keeping the summer season in mind. However, despite the discontinuation of BTC mining operations, the country still experienced several vast power outages this summer. This was noted to be due to extreme heat, which went as high as 120 degrees Fahrenheit.
The initiative to ban mining operations during these months was taken to reduce the intensity of power outages and water shortages. The ban enabled the citizens to easily use their air conditioning systems and pull through the heat during the summer season.
Now after three months, the Iranian government has announced that it will allow the licensed crypto miners to continue mining operations in the country. The temperature is not that extreme now and the Middle Eastern country has also appointed a new president, Ebrahim Raisi.
Iran has an abundance of fossil fuel resources and offers some of the lowest electricity prices in the world. This is why nearly 4.5% to 7% of the world’s crypto mining is carried out in Iran.
According to a few reports, Iran is a Bitcoin-friendly country in order to bypass US sanctions. At the moment, the revenue estimated from the mining operations in the country has been noted to be around $1 billion.
Could This Give a Boost to BTC’s Price?
People who have been in the crypto market for a long time are familiar that any fluctuations in factors relevant to BTC, cause its price to increase or decrease. This in turn, affects the prices of all other altcoins in the crypto market as well.
This is why any new establishment in the crypto space immediately leads people to wonder if it will impact the prices of Bitcoin and other altcoins.
The price of BTC was greatly affected when the mining operations were banned in China. Even though those were different circumstances, there was a shift in BTC’s price.
However, whether Iran’s decision will make a difference or not in BTC’s price is yet to be seen.
Here is a graph by CoinGecko that shows the ups and downs in Bitcoin’s price over the last month.
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