Iran to Draft Cryptocurrency Document

Local officials believe that national cryptocurrency can serve as a tool for circumvention of US sanctions
27 August 2018   458

The National Center for Cyberspace of Iran reported on the completion of the bill on the national crypto currency, the Financial Tribune reports.

The draft of the national cryptocurrency was developed in accordance with the instructions of the Iranian President Hasan Ruhani. According to the deputy head of the local Council for Cyberspace, Said Mahdiyyin, his department actively promotes the idea of ​​a national cryptocurrency, which can serve as a tool for circumvention of US sanctions.

Mahdiyyun also noted that the authorities of the country will soon eliminate legal uncertainty in the sphere of cryptocurrencies, since the Central Bank of Iran intends in September this year to clarify the official position on this issue.

At present, Iranian banks and other credit institutions are prohibited from carrying out operations with cryptocurrencies due to concerns of local authorities regarding the risks of money laundering.

Earlier this month, Accenture, a consulting company, published a report stating that the groups supported by the Iranian government and local criminal elements are engaged in the distribution of cryptocurrency ransomware on a global scale.

Bear Market to Hit Mining Hard

BitMEX research division presented an analysis of the impact of market decline on the mining industry
11 December 2018   63

The cryptocurrency market has experienced a marked decline over the past weeks. The BitMEX research division presented an analysis of the impact of these events on the mining industry. Bitcoin hash rate has fallen by 31% since the beginning of November, which is equivalent to the capacity of 1.3 million Bitmain S9 devices. From this, BitMEX concludes that miners as a class are in a difficult situation, however, they may have different conditions, and those who pay more for electricity, are forced to turn off their equipment first, while others may still be quite viable.

The decrease in the price of Bitcoin by 45% since the beginning of November has already caused two recalculations of the complexity of mining to the lower side - by 7.4% and 15.1% on November 16 and December 3, respectively. The first recalculation turned out to be the largest since January 2013, the second - since October 2011.

Bitcoin mining revenue fell from $ 13 million per day in early November to $ 6 million per day in early December. The fall in the size of the miner's encouragement turned out to be even more rapid than the fall in the price of cryptocurrency. This is due to the delay in recalculating the complexity of mining. For the six-day period ending December 3, 21.8% fewer blocks were mined than expected, since the miners left the network before recalculating the difficulty. As a result, in addition to reducing the size of the miners' encouragement in dollar terms, due to lower asset prices, they received 21.8% less bitcoin awards.

One of the popular reasons for the recent decline in the cryptocurrency market is that miners sold bitcoins to cover their costs of hash warsin the Bitcoin Cash network. The monitoring platform Boltzmann recorded an unusually large sale of Bitcoin by the miner on November 12, that is, 3 days before the hard fork of Bitcoin Cash.

BitMEX assumes that the actions of miners over the past weeks could have played a significant role in reducing the market, however, recommends not overestimating their value and reminds that in a bearish trend, prices continue to fall regardless of asset movements and news.