Can Bitcoin mining in Iran pay back in one month? Only if you survive can you get it back!

On October 26, Bao Erye claimed on his Weibo that he had found a power station in the Middle East where the electricity price was 0.4 cents per kilowatt-hour, which was suitable for hosting various second-hand mining machines that were about to be shut down, and the investment could be recovered in one month.

With such a good thing, wouldn't it be a good time to make a fortune? However, what is the actual situation of Bitcoin mining in the Middle East? Iran is one of the main countries in the Middle East for Bitcoin mining. Lieyun Finance starts with Iran.

On September 5, it was reported that Iran has officially recognized cryptocurrency mining as an industry and that the Central Bank of Iran will draft a policy framework for the crypto mining industry within the next three weeks.

The report also stated that Abolhassan Firouzabadi, secretary of Iran's Supreme Cyberspace Council, said that the in-depth use of cryptocurrencies is to facilitate trade between Iran and its partners, especially after the United States re-imposed sanctions.

According to IBENA, a news agency specializing in banking and economics affiliated with the Central Bank of Iran, Firouzabadi stressed that “mining cryptocurrencies such as Bitcoin has been accepted as an industry by the government and all related organizations.” However, IBENA also said that “the policy on cryptocurrency mining as an industry has not yet been finalized.”

However, three weeks have already passed, and as IBENA said, the policy on cryptocurrency mining as an industry has not yet been finalized .

Mr. Han, an insider, said that the news itself was a deliberately distorted one . The real situation was that a certain institution submitted information on digital currency research and development to Congress, but no one knew how long the discussion took, or whether it would be passed in the end. It was just submitted, and everything was unknown.

Cryptocurrency mining still has a long way to go before it can become an industry. The fact that it has not yet been legalized makes people feel like they are on the throne of Dionysius, with the sword of Damocles hanging over their heads and the risk of falling at any time.

At present, it seems that there are still many risks that cannot be ignored in mining in Iran, such as customs risks, government or owner risks, personnel risks, etc.

01

Customs risks

It is understood that Iran has banned the import of all mining equipment. According to reliable information obtained by Lieyun Finance, as of August this year, more than 20,000 devices have been seized by customs. Customs staff have received professional training and are very familiar with mining equipment. Even disassembled mining machines cannot escape their "eyes".

According to miner Lao Li, one time his friend went on a business trip to Iran and packed a disassembled mining machine in a box, but it was still detained by customs. According to most people's thinking, they can just pay some money to redeem it, but Iranian customs did not buy it. Customs only confiscated the mining machine and did not impose a fine.

Why did they confiscate the mining machines? The answer given by the public is that the Iranian customs has its own mining farm. According to Lieyun Finance, there is news that the customs once tried to sell more than 20,000 confiscated machines, asking for 20,000 to 30,000 yuan per machine. However, the market was not very good at the time, so buyers said that they could buy mining machines for 1,000 to 2,000 yuan. The price of the mining machines at the Iranian customs was too high, and no one bought them in the end.

Although this is a joke, industry insiders said that the credibility is more than 50%. If the customs did not have its own mining farm, would all the mining machines it confiscated have been destroyed? That is money, how could it destroy so much money? Moreover, the news that more than 20,000 mining machines were confiscated has been confirmed by many parties.

02

Government or owner risk

In Iran, mining projects do not exist, which means that mining in Iran is a black project that cannot see the light of day. Not only can the Iranian government stop your project at any time, but even the owner who seems to have no power can be the "powerful" person.

Lieyun Finance learned that in the eyes of investor Xiao Li, the biggest risk in overseas investment is "making clothes for others" . "There is no load in the local area, so investors need to build substations and other infrastructure by themselves. After the construction is completed, the investors will be driven away by the owners. This is not a waste of time, but learning from Lei Feng to build infrastructure for others." Xiao Li said helplessly.

Xiao Li continued, "Although there are middlemen, they are often unreliable. Generally speaking, middlemen have some resources or connections, but they only have a few resources or connections, and are not strong enough to control the situation. What's more, some middlemen are eyeing all your property."

"Either the government suddenly comes to investigate, or the local owners suddenly drive you away. The facilities that the investors have worked so hard to build are taken away by others to do what they want. Where can you go to appeal for justice?" Xiao Li added.

Industry insiders said that 90% of the people who went out to sea to build mines lost all their money, and perhaps even 98% of them lost everything.

In the eyes of the owner, you are a fat sheep waiting to be slaughtered. When to slaughter? The owner has the final say. In Iran, the president's son-in-law, son or other relatives will not be accepted, only those with real power will be accepted. You have to have strong connections to earn this money .

Iran's legal system is not sound, and robbery is common. An investor told Lieyun Finance: "My friend had just finished building the site, but one day a lot of Iranians rushed in and took away all the equipment without saying a word." This means that no one will steal your mining machines in Iran because they are all robbed.

03

Human risk

Privately cooperating with Iranians to mine seems to be a good way to make use of their local resources, but this is not always the case. In many cases, Iranian resources are actually risks for investors.

Investors may not always meet gentlemen in their life, but meeting a villain once is enough. Although it is not so lucky, it is better to be safe than sorry. Mr. Li (pseudonym), who just returned from Iran, encountered such a thing. He told Lieyun Finance: " Iranians are too dishonest. We had a good cooperation, but in the end I lost everything. " According to Mr. Li's description, the situation is roughly as follows:

Mr. Li and an Iranian were working together to mine. At first, everything was going well, but suddenly one day, more than a dozen police officers broke into their mine and sealed it off. But after a while, the Iranian actually got the mine back from the police. But the difference was that before, he and Mr. Li jointly owned the mine, but later, the Iranian owned the mine alone.

Li said: "The whole incident was planned by this Iranian. He first cooperated with me in mining and made me invest a lot of money. Then he took the initiative to find the police to seal it up. Then he gave money to the police through the back door. In the end, he got the mining equipment, the police got the benefits, and I was kicked out."

Everything happened so suddenly that before Li could react, all his investment and hard work had "evaporated". Li added: "The closure of my mine is not an isolated case. The Iranians have various channels to confiscate the assets of investors like us."

As Mr. Li said, according to reliable information, there was a Chinese automobile company that cooperated with an Iranian company. After a dispute arose, the court had not yet concluded the case. The Iranian company went to the customs and other departments to apply for a ban on the Chinese boss of the automobile company from entering the country, physically restricting the Chinese boss from participating in the trial. Therefore, under the circumstance that the boss could not enter the country, the case could not be continued, and it ended up in vain.

In addition, the industry is full of rumors that Iran's electricity prices are cheap. In fact, Iran's current electricity prices are not as cheap as imagined, but they appear cheap due to financial reasons. Iran's electricity is not abundant, and its distribution is extremely uneven. In areas with abundant electricity, the temperature is quite high, which is also a challenge for the mining machine itself.

Regarding the question raised by Lieyun Finance, is it feasible to mine on our own without cooperating with local Iranians?

Industry insiders said that as a project that cannot be put on the table, it is possible to mine secretly, but it is always at risk. It is like a sheep walking among wolves, always being watched by the wolves. If you are not careful, you will lose all your money, or even your life. If you are investigated in Iran, you cannot solve it through connections, and you can only accept it if you are investigated. Mining in Iran is not about making a fortune in silence, but about suffering.

The latest news says that the US sanctions on Iran have been further intensified. Obviously, the investment risks in Iran will naturally increase as a result.