There are a lot of restrictions that make investing in your idea "losing money" that will never make profits due to the following:
- Low electricity prices: This is not a real advantage. Iran has passed legislation on the use of electric energy in mining, indicating that additional fees will be imposed.
The Iranian government is reportedly offering a bounty for anyone that dobs illegal Bitcoin $BTC▼0.42% mining businesses to the authorities. ... Rajabi said that using the national grid to mine cryptocurrencies during peak hours will be outlawed under new regulations used to calculate electricity prices.
Legal status: The central bank prohibits crypto transactions, which makes the legal basis non-existent, in addition to the fact that Iran is an unwanted country, so (legally) it will not be able to recover money if any problem occurs.
I know that there's a few people selling and buying bitcoin in Iran with LocalBitcoins, he said, adding that bitcoin was the "only way" to transfer money from the country. Iran's central bank banned bitcoin-related transactions in April
Low exchange rate of local currency due to excessive inflation.
And many other things.
Thank you for the reply. A fully detailed article here is explaining legal aspect of dealing with Bitcoin in Iran:
https://arzdigital.com/iran-bitcoin/Let me summarize it:
* Mining is prohibited in peak time ONLY for non-industrial users. If you have industrial electricity subscription, you can mine. Ministry of Industry, Mine and Trade do even give license for related mining businesses. Electricity price for miners is $0.015 (2000 IRR - 13000 IRR/USD) per 1kWh as I've mentioned.
* Can banks or official exchanges involve in trading cryptocurrencies? No. It's described here:
https://www.cbi.ir/showitem/17722.aspx* Can people/individuals trade cryptocurrencies? Yes because there is no law for it (and thus it's not forbidden). And since the government itself uses Bitcoin to bypass the sanctions and mining is allowed officially, you can be sure that there won't be any law about it.
Inflation rate is excessive; you right and that plus high amount of money entrance in this year are the real reason Tehran Stock Exchange is growing that much. However, you shouldn't compare IRR/USD rate solely. It's needed to be compared with stock value growth which make a large net profit margin in final USD conversion