Under pressure from the US government, Iran struck an unprecedented deal with China and bitcoin miners are already taking advantage of the newly closed ties.
Beijing and Tehran have announced one of the most important bilateral agreements in recent times. As part of the “One Belt, One Road” initiative, Iran will receive more than 400 billion of dollars in investments, mainly in the oil sector and in the installation of 5G networks.
Bitcoin miners, the Chinese heralds
But the one who first arrived in the Middle East was not Huawei with its 5G or China National Petroleum Corporation, but the skilled Bitcoin miners. Ebang, Bitmain, and MicroBT were already known to Iranians because their mining machines flooded the country following US financial sanctions against Tehran.
If you follow our Telegram, you know that the government of Iran allowed, less than 1 month ago, the installation of mining farms in power generating plants. As a comparison, it would be as if the Brazilian government gave permission to install bitcoin miners in Itaipu, Sobradinho and Angra dos Reis.
And the first to benefit from this decree were the Chinese. The Lubian mining group decided to set up shop and today operates the largest mining farm in Iran with huge government incentives.
“We have our own customs clearance channels, as we have the experience of establishing the logistics company. And we have good local resources in Iran, and we have maintained good relations with the Ministry of Energy, the Ministry of Foreign Affairs and even the Iranian military, ”said Liu Ping, Lubian's chief executive officer.
With energy costs of less than $ 0.006 kilowatt hours, Tehran has a huge advantage compared to other mining centers such as the United States and some European locations. However, the country is still only sixth in the ranking of generated hash rate, creating only 3.82% of the network's mining power.
But that is about to change and if it depends on Chinese miners, all of Iran's energy will go to securing the largest cryptocurrency on the planet.
"Compared to traditional industries, cryptocurrency mining is a profitable business," Liu Ping concluded.