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What do cryptocurrency mining activities in sanctioned countries say?
The US has currently imposed economic sanctions against one tenth of the world's emerging economies. These nations include Iran, Venezuela, Cuba, Sudan, Myanmar, the Democratic Republic of Congo, North Korea, Russia, and others on which Washington has imposed sanctions over the years. It seems that Trump’s administration is showing less patience. The officials stressed that companies based in China and India, two of the largest buyers of Iranian oil, “will be subject to the same sanctions that everybody else is” if they continue with the purchases.
However,the Republic of Iran has revealed the details of its national cryptocurrency in response to the United States-led economic sanctions.
The central bank-affiliated body, Iran’s future cryptocurrency is backed by Rial and is developed on the Linux Foundation-led open-source Hyperledger Fabric technology, according to Informatics Services Corporations (ISC). In contrast to decentralized cryptocurrencies that are issued in compliance with a mathematical formula, Iran’s digital Rial is launched backed by their central bank’s decision. That said, Iranian digital currency cannot be mined, and its transaction records can only be retrieved on a private blockchain.
A research unit of South Korea’s state-run Korea Development Bank (KDB) has compiled a report suggesting that North Korea has been mining cryptocurrencies.
“The KDB unit said North Korea may have tried to mine bitcoin between May and July last year, but the attempt appears to have been unsuccessful,”as per the publication of Yonhap News Agency.
While ‘Venezuelan Petro’ which is an oil-backed cryptocurrency that is introduced for FX devaluation mechanism, Cryptocurrencies have become progressively admired in nations like Venezuela, where the domestic economy is in turmoil and their currency has been besieged.
Elsewhere, one of the largest cryptocurrency mining farms in Russia has begun in the Leningrad Region. The facility setup is equipped with more than 3,000 pieces of mining equipment and would cover an area of about 4,000 square meters, according to the regional government.
“According to the results from the first half of this year, the number of mining enterprises in Russia has increased by 15%, to 75,000. The mining industry already employs 350,000 people. As of July 2018, Russia accounts for about 6% of the world’s mining market, which is 1% more than a year ago, while the US and Canada hold the leading positions,” Quoted by the Prime news agency, the association’s president, Yuri Pripachkin, summarized.
Overall, in the end, we should notice two things from this write-up, one hand, the stringent sanctions impositions and on the other hand, the miners, who utilise super computers that consumes high power to mine cryptocurrencies by cracking complex computational hitches, are power hogs that can bring new sources of revenue for energy producers. But that revenue generally comes at a price: millions of dollars of investment in new power stations and lines. So, is it worth investing...? wise to ask this question themselves before setting up mining operations.
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