There are no backwinds for cryptocurrencies. In fact, there are those who make sure they are at the most critical moment of their existence. If last week were days grapes for this, despite a small recovery on Sunday after a disastrous 12-day run with lows since the beginning of 2020, It’s not starting very well this Monday, as weekly trading has started below $ 20,000.

This is not the only queue that cryptocurrencies have to face. Their situation in different countries of the world is sometimes complicated. In this sense, Iran is one of the most hostile countries for these next-generation virtual currencieswhere the government continues to delay and observes with full distrust.

Iran is again curtailing cryptocurrency activities and all this despite the fact that it has become one of the best ways to avoid the bloody international sanctions that his economy has suffered for too long. And what is the new and harsh attack on the sector? Unprecedented decisions in the world: Iran will cut off electricity to 118 officially registered miners in the countryas Bloomberg states. It will begin this Wednesday, June 22, according to Mostafa government industry spokesman Rajabi Mashhadi.

Iran is one of the countries most challenged by the West, and in fact the harsh sanctions imposed on the country prevent it from accessing the international financial system – mainly due to US retaliation. In 2019, the country recognized the important role of cryptocurrencies in circumventing these sanctions and began licensing. The miners, of course, had to pay higher electricity rates and sell their bitcoins to Iran’s central bank.

Miners “spend” a lot of electricity

However, the global energy crisis is also affecting the country and the government believes 118 miners are abusing electricity on the other hand, it increases the inaccessible pressure on its electrical infrastructure. He ordered the closure of two mines a few weeks ago, but all indications are that the closure will increase in the coming weeks.

Although we must return to Spring 2021, when Iran temporarily banned bitcoin mining for four months and other cryptocurrencies mimicking China or Tesla, which stopped accepting it as a form of payment for this very reason: electricity consumption.

It should be noted that Iran was one of the countries with the largest mining presence in the world. According to Elliptic, which specializes in blockchain analysis, up to 4.5% of all cryptocurrency production worldwide was in the country before the pandemic. According to the Cambridge Center for Alternative Finance (CCAF), that number has been reduced to 0.12% today.

The cryptographic hash rate, which measures the computing power used by cryptocurrencies, is already minimal in Iran, unlike other countries such as China. Where, despite falling to 0 between July and August 2021 and after the country took the toughest measures against cryptocurrency mining, the cryptocurrency sector was reborn from the ashes and in September of that year China already accounted for 30% of this rate in the world. , which rose to 40% this year only for the USA. And all this despite the fact that cryptocurrency trading is banned in the country, although miners operate covertly by redirecting their data through proxy services.

It is not known what the future of bitcoin in Iran will be. Mining has allowed them to generate hundreds of millions of dollars without having to depend on outside countries and circumvent US sanctions. A hatred relationship whose last word was not written.