A bitcoin mining farm has been given the green-light to operate in Iran with local media calling it “Iran’s largest bitcoin farm.”
The license states that Afrand Sheid Mehr, the owner of the iMiner brand, is allowed to mine bitcoin with a processing capacity of 96,000 terahashes per second.
The bitcoin network is currently running at 113 million terahashes per second, giving iMiner ownership of 0.08% or about 1 block in 1,000.
A $7.3 million investment was made in iMiner’s Iranian facilities with 6,000 asics to mine bitcoin.
Its capacity should give them about 375 bitcoin ($3.3 million) in roughly seven months at the current global hashrate and at the current block reward of 12.5 bitcoin.
That block reward is to be halved, but the event would affect all miners and perhaps price, with our calculations more focused to suggest the investment seems to be a reasonable bet.
The official license makes this the first known state ‘stamp’ on a mine, with Iran looking into bitcoin since at least 2017 to potentially engage in international trade outside of the banking system which generally significantly restricts access to the country.
iMiner says they operate in Turkey, Russia, the US, Canada and Iran with the above reported by Tabnak, which seems to be a credible Iranian news outlet apparently owned by Mohsen Rezaee Mirgha’ed, described as an Iranian conservative politician affiliated with the Resistance Front of Islamic Iran.
Bitcoin mining in Iran gained some traction last year with some estimates suggesting 148,000 asics might be operating there, giving it about 3% of the bitcoin network.
The China aligned country was wooing mining operators based on very cheap electricity of $0.006 kilowatt per hour which for miners was increased to 5 cent, the price at which most miners globally are believed to operate.
That, in addition to the US-Iran tensions that opened the year, led to reports some Chinese miners were leaving, but three months on now that all seems like a long time ago.
The open nature of bitcoin means anyone that has the funds and the machines can mine it with mined bitcoins usually considered as the most ‘pure’ because there would be no blockchain history you track but you can potentially track through IPs or listening nodes.
Bitcoin mining is a very risky business however because constant innovation doubles or even more processing speed with a significant but small industry engaged in very high tech chip manufacturing and design mostly concentrated in China which could potentially be breaking new grounds both in regards to bitcoin processing specifically but also more importantly in regards to computing power generally.
The United States is not quite competing at that cutting edge, although AMD has tried to attract ethereum miners, while Europe is asleep of course.
Making all this challenging for the United States and its control over the global monetary financial system with its sclerotic bureaucracy even more asleep than Europeans but mining is taking root in America as the Chinese government has been threatening those within its own country for now about three years.
The key as always is to be the best, rather than wasting energy on trying to prevent others from being better. China has been focusing on the former – and even in a cunning way by banning crypto exchanges while facilitating crypto mining – while America might be gripped more by the fear of losing what it has than the hope of gaining what is out there.
So failing to compete at a reasonable level in the great mining race where the old rules do not quite apply however much one might want to hold on to the past.