Iran will allow BTC mining again from September

BTC mining in Iran is not illegal, but it must be licensed. However, even during the warm summer months, even accredited Iranian miners could not continue their activities because the country suffered from a shortage of electricity. The problem was so serious that Iran also suspended the sale and export of electricity to neighboring Afghanistan.

According to the Cointelegraph portal, around 1,000 miners have so far obtained a license to mine BTC. The 30 most recent licenses were granted during June. However, an unknown number of miners continue to mine BTC “illegally”. According to a local source, local authorities have already seized more than 7,000 pieces of hardware while clearing such illegal mining.

The local government expects BTC and cryptocurrency mining to become a major economic activity in Iran. However, it must be regulated and curtailed in the event of further power outages in the country. Iran has ambitions to remain a leading country in this area – alongside it USA, Russia, Canada or Kazakhstan.

The hashate of the BTC network is growing

After the forced restriction of BTC mining in China in May, the BTC hashrate fell sharply from historical highs by more than 50% of the generated computing power. However, as of July 3, according to Blockchain.com, the hashrate bounced off the bottom (approximately 82 TH / s) and is steadily rising to the current approx 120-125 TH / s. Following the resumption of legal BTC mining in Iran in September, it is likely that the hashrate will strengthen again by some time, approaching its long-term average ahead of the Chinese BTC mining ban.

Hashrate has long been a closely watched indicator because it talks about the health of the entire network. In other words, the higher the hashrate, the more secure and resilient the BTC network is to the so-called “51% attack”. Hashrate also tends to indicate a movement in the price of BTC. If the miners’ efforts to mine BTC escalate, it is proof that they believe in its further rise in prices. Conversely, a sharper decline in the hashrate (unless forced as in the case of the May exodus of Chinese miners) may be a signal that miners are anticipating the arrival of a bear market (they are selling BTC and reducing computing power).