Chinese bitcoin miners seek stability in Iran market

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Bitcoin mining is an extremely energy focused and energy-driven procedure which requires a large supply of electricity when done on a large-scale. Recently, Chinese Bitcoin miners decided to shift their focus towards Iran for cheaper electricity. This gradual emigration started far before China indicated their intentions of terminating Bitcoin mining projects. Iran had become the center for miners in addition to other parts of Asia like Cambodia and Vietnam.

CHINA LIKES TO STAY IN CONTROL

As part of a state cleanup project initiative, the Reform Commission of China (NDRC) looks to draw off some industries. The cryptocurrency mining industry is also included in the targeted industries. The recent venture of these Chinese miners in Iran has not proven to be the best idea. Numerous reports suggest that there are certain problems that were disregarded when considering the middle east for operation.

PROBLEMS CONSIDERING THE MIDDLE EAST FOR OPERATION

The first of the many problems is the maneuvering of necessary equipment from China to Iran via the Iranian border. It is not as easy as it seems. According to one of the miners, Liu Feng, the probability of losing incoming equipment at the country’s border has increased as the customs have confiscated at least forty thousand crypto mining rigs until now.

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IMAGE SOURCE: Bitcoin Exchange Guide

People who are wealthy enough managed to tip the officials in their favor, and were able to sneak some of this equipment. This was made possible by legally presenting the pieces of machinery as non-mining equipment.

In his report, Feng goes over the reasons for the incoming equipment being confiscated, stating that, since Iran is benefitting from huge amounts of subsidy on electricity, the government has issued a list of devices that use huge amounts of electricity that are now banned in the country.