It looks like Iran will be back to mining Bitcoin at the end of September. According to reports, The Iran Power Generation, Distribution, and Transmission Company (Tavanir) will allow Bitcoin mining from September 22 in the middle eastern nation.
Many had wondered if the ban on Bitcoin mining in Iran was following in the footsteps of China, which began enforcing a total ban on mining earlier this year.
Apparently, Iran was just looking out for regular electrical consumers, who needed access to electrical power during the power intensive summer months.
Late September looks like the time when Tavanir thinks there will be enough power for Bitcoin miners to enter the market, and start supporting the Bitcoin network again.
Iran may be Looking to Bitcoin as a New Currency
There is no doubt that Iran has suffered under the influence of the Western banking system, which has penalized it for many years. In addition to sanctions on Iranian businesses, the USA forbids other nations’ companies from dealing with Iranian companies.
Bitcoin is free for any person or nation to use – which makes it extremely valuable to a nation like Iran that has loads of energy, but may not always be able to monetize it in an efficient way.
For example, to gain from its enormous natural gas reserves, Iran needs to export it – which isn’t easy given the US stance toward the nation – or use it domestically – which requires complex infrastructure which may not add value to the nation in a holistic sense.
Enter Bitcoin, which can be mined anywhere there is an energy source, and only requires a data connection to be valuable. In other words, Iran can build smaller generation facilities in the middle of nowhere (where the energy is) and mine it on site.
It can also allow its population to develop Bitcoin (or other tokens) mining rigs, which adds value to the economy as a whole.
The Arrogance of Control
Unlike China, Iran likely sees that having a back up currency system to use is valuable.
There is a very different approach to crypto regulations emerging in the world at-large, and one seems to be a lot more resistant to failure than the other.
Nations like China (and to some degree, the USA) are looking for ways to control decentralized currencies – and if this isn’t possible – ban them. This effectively eliminates the ability of people to access alternative currencies, or use them to insulate their society from economic shock.
The USA hasn’t been as fast to move on cryptos as China, but the arrogance of the US government – and its US Dollar – may be part of the reason why the US is just starting to create draconian crypto laws that makes it an unattractive asset for anyone that is subject to US laws.
One aspect of this situation is that both China and the USA think that they – as political entities – are so powerful, that neither will never be challenged in a monetary sense.
Make no mistake – fiat currency is new.
Money was backed by gold until 1971, which is after the last major shift in world reserve currency took place. We simply don’t know how a global population will react to massive economic (and perhaps political) upheaval – especially without a golden anchor.
Iran has no doubt lost a substantial amount of global clout since its Western-installed government was violently removed in 1979 – but as a culture, the Persians have seen the rise and fall of every single important political entity in human history.
Now Iran is working to support Bitcoin. It may behoove one to pay attention to that simple fact.