It should be noted that recently El Salvador has accepted bitcoin as a legal tender. Although the use of the US dollar will continue in the country, Salvador has become the first country to accept bitcoin as a legal tender. This indicates that the future holds immense potential for the cryptocurrency market. As of writing the news on June 11, the price of bitcoin in India was Rs 27.2 lakh.
The US has imposed CAATSA, a law combating America’s opponents through the Sanctions Act on Iran. This allowed American companies to no longer do business with approved entities. However, economic sanctions keep Iran in a position because companies affiliated with the West are bound to deny 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. Even in the face of such extreme circumstances, Iran has openly welcomed the cryptocurrency revolution. According to a study by Elliptic, Iran’s bitcoin hash rate is 4.5 percent. Bitcoin hash rate is simply a measure of the good and bad state of the network. Higher hash rate means more processing power is present inside the network. For example, China leads with a hash rate of 55 percent and the US is second with a hash rate of 11 percent.
During bitcoin mining, thousands of computer machines work on complex equations day and night, which greatly increases the energy consumption in this process. Two years ago Chinese miners were largely encouraged to set up in Iran because electricity was cheap there. Iran granted licenses to 50 bitcoin mining companies since July 2020. But it did not last long. The electricity crisis in Iran started deepening due to bitcoin mining. Unplanned blackouts started happening in the country and that is why the Iranian government banned bitcoin mining outright for four months in May this year. 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 the economic section, it cannot take advantage of this. Therefore, this energy was used by the country for mining bitcoin.
Download the Gadgets 360 Android app and follow us on Google News for the latest tech news, smartphone reviews and exclusive offers on popular mobile phones.