The Mining Pod | Bitcoin Mining News Bitcoin Mining in Iran w/ Masih Alavi
May 6, 2025
Masih Alavi, CEO of ViraMiner, sheds light on Iran's unique Bitcoin mining scene. He reveals that only 5 MW of mining is legal while a staggering 2 GW operates illegally, often in hidden locations like basements and jewelry shops. Alavi discusses how outdated equipment still proves profitable for citizens navigating harsh sanctions. He explains the Iranian government's discouraging policies that push miners underground and the ingenious strategies they employ to continue mining while avoiding detection.
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Legal vs Illegal Bitcoin Mining
- Iran has only 5 megawatts of legal bitcoin mining but about 2 gigawatts run illegally in homes and businesses.
- Citizens mine to evade sanctions, convert crypto to USD, and survive capital controls and inflation.
Ethereum Mining on GPUs in Iran
- Early miners in Iran used GPUs for Ethereum mining instead of CPUs because CPU mining became unprofitable.
- Many learned and shared knowledge through Telegram groups in 2016.
Tariffs Drive Illegal Mining
- High electricity and gas tariffs for miners push many to operate illegally despite expensive legal routes.
- Government misunderstands mining as printing money and sets punitive rates, driving miners underground.