Iran has just announced its biggest mining farm has been given the go ahead.
Iranian mining firm iMiner has won the rights to build the mining farm, which will have 96,000 TH/s capability. With the Bitcoin network being hashed at 113 million TH/s, it will give iMiner 0.08% stake in the hashpower.
iMiner owner Afrand Sheid Mehr has spent almost $7.5 million on the Bitcoin mining hardware, and will receive a mouthwatering 6,000 ASICs miners.
At today’s hashrate and with the Bitcoin halving set to take place in less than two weeks, it’s estimated that iMiner will earn about 275 BTC in the next year, which is worth almost $2.5m at today’s price.
Iran A Bitcoin Mining Hotspot
Iran has been one of the mining hotspots since the Bitcoin mining industry’s sprouted into significance. However, the official license means it is the first official approval from any government.
And with US sanctions crippling the oil rich nation, it’s hardly surprising the Iranian government are keen to see Iran’s proof of work grow.
Bitcoin is one way Iran will be able to bypass sanctions and trade internationally, although there are rumors Iran is in talks about creating a gold-backed cryptocurrency with other governments who are trying to get around Washington’s draconian sanctions.
But Iran knows that Bitcoin is king, and the government has a liberal approach to mining firms there.
The news comes on the back of 1,000 mining licenses hand out in the Persian state, which has led to significant growth in the Bitcoin mining industry.
It’s believed that many miners are attracted to Iran because of state-subsidized electricity tariffs, and some of the most popular Iranian crypto mining channels have thousands of members.
Bitcoin Mining Is A Growing Industry
Bitcoin mining is a nascent industry, and most of it is centred in China, where it’s believed to be processing about 65% of all Bitcoin hashrate.
The U.S. is slowly catching up and syphoning some of the hashrate away from China, but it still has a long way to catch up. Other mining super-hashpowers are Iceland, Sweden and Georgia, but Iran is catching up.
Anybody can mine bitcoins, but to compete you need to have the latest ASICs mining rigs. Gone are the days when Satoshi mined early BTC on his CPU. As Bitcoin started to gain traction, CPU mining evolved to GPU and then ASICs were created especially to mine BTC.
Bitmain has just released their newest ASICs miner – Antminer S19 Pro, which mines at a staggering 110 TH/s, which is more than 30% higher than it’s other competitors.
Not to be outdone, Bitmain’s competitor: MicroBT has recently announced it will be launching its newest ASICs rig – Whatsminer M30S++, which is believed to have a hashing capacity of 112 TH/s.
And with the Bitcoin halving set to take place this month, the competition for BTC will ramp up to levels we’ve never seen before.
It’s hard to know what will happen with the BTC price in the short term, but all this competition in the mining stakes it can be expected that the demand for the world’s biggest cryptocurrency will stiffen.
Bitcoin is off the 'financial grid' and a way around sanctions for governments like Iran. It will never be known if governments are using BTC to evade such things, but with the lack of trust among each nation’s fiat currency, it’s inevitable that Bitcoin will become a payment gateway.
Not only this, adding BTC to its reserves even electrify a government’s clout. Maybe Tehran is aware of this.
Author: Tommy Limpitlaw