Iran's internet shutdown could have a serious impact on Bitcoin

Amid the wave of protests against the government, Iran’s nearly complete internet shutdown has raised concerns about its impact on Bitcoin mining activities. However, this incident is not a systemic threat to the Bitcoin network but mainly exposes the fragile link between geopolitics, energy policies, and the global hashrate distribution.

Iran currently contributes only a small percentage of the global Bitcoin hashrate, much lower than the peak in 2021. Thanks to the automatic difficulty adjustment mechanism, even if all miners in Iran cease operations, the Bitcoin network can absorb the shock without significant disruption.

The internet outage primarily increases operational costs, making it difficult to coordinate with mining pools, update systems, and pay out rewards. In the long term, this event highlights the trend of hashrate continuing to shift away from regions with political risks to countries with more stable legal environments and energy sources.