US-Iran Conflict Threatens Global Cryptocurrency Operations

The geopolitical tensions between the United States and Iran have raised concerns about the potential impact on global cryptocurrency operations. One significant risk is the disruption of Bitcoin mining in Iran, which could lead to a decline in hashrate, increased transaction fees, and slower network operations.

Iran's sanctioned Bitcoin mining operations consume approximately 2-5% of global Bitcoin hashrate, representing one in every 25 blocks mined worldwide. The country maintains substantial electricity subsidies, allowing miners to produce Bitcoin for approximately $1,320 per coin compared to global averages exceeding $20,000 in some regions.

The disruption of Iranian mining operations could be a result of targeted infrastructure attacks on the country's power generation facilities. This would eliminate 30-50% of Iran's electricity production capacity, effectively halting most Bitcoin mining operations within the country.