Bitcoin craze hits Iran as US sanctions squeeze weak economy

ABC News | 7/18/2019 | Staff
dewbydewby (Posted by) Level 4
Click For Photo: https://s.abcnews.com/images/Technology/WireAP_5ddbd6d6ff5045adbffe90bc3bb90989_16x9_992.jpg

Iranians feeling the squeeze from U.S. sanctions targeting the Islamic Republic's ailing economy are increasingly turning to such digital currencies as Bitcoin to make money, prompting alarm in and out of the country.

In Iran, some government officials worry that the energy-hungry process of "mining" Bitcoin is abusing Iran's system of subsidized electricity; in the United States, some observers have warned that cryptocurrencies could be used to bypass the Trump administration's sanctions targeting Iran over its unraveling nuclear deal with world powers.

Bitcoin - Craze - Pages - Newspapers - Country

The Bitcoin craze has made the front pages of Iranian newspapers and been discussed by some of the country's top ayatollahs, and there have been televised police raids on hidden computer farms set up to bring in money by "mining" the currency.

Like other digital currencies, Bitcoin is an alternative to money printed by sovereign governments around the world. Unlike those bills, however, cryptocurrencies are not controlled by a central bank. Bitcoin and other digital currencies like it trade globally in highly speculative markets without any backing from a physical entity.

Result - Computers - World - Mine - Data

As a result, computers around the world "mine" the data, meaning they use highly complex algorithms to verify transactions. The verified transactions, called blocks, are then added to a public record, known as the blockchain. Any time "miners" add a new block to the blockchain, they are rewarded with a payment in bitcoins.

To work, the expensive specialized computers require a lot of electricity to power their processors and to keep them cool. In Iran, "miners" have an edge because electricity is cheap thanks to longtime government subsidies. "Miners" also buy cheaper Chinese ready-made computers to do the work.

Raids - Authorities - Statements - Issue - Bitcoin

But the constant raids and authorities' conflicting statements on the issue have Bitcoin "miners" in Iran incredibly leery of being identified. Those contacted by The Associated Press refused to speak about their work or...
(Excerpt) Read more at: ABC News
Wake Up To Breaking News!
The only change you ever get from the goverment is what's in your pocket, and worth less every day.
Sign In or Register to comment.

Welcome to Long Room!

Where The World Finds Its News!