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Electricity Provider of Iran Warns About Power Outages Caused By Illicit Crypto Mining


cryptoknowmics.com 11 October 2021 02:48, UTC
Reading time: ~2 m

The national electricity ministry warned on Sunday that illicit crypto mining in Iran risks causing power outages this winter. Iranian officials frequently accused unauthorized Bitcoin miners of using massive quantities of power.

Illicit Crypto Mining Cause Power Outages in Iran

According to a statement issued by the Iranian state news agency IRNA, illicit Bitcoin mining is to blame for at least "10% of power disruptions this winter."

According to the study, illegal mining accounted for 20% of the summer's interruptions.

In September 2018, Iran became one of the first nations in the world to legalize Bitcoin and other cryptocurrencies, but miners must first get a permit.

Authorities stated in May that "illegal" miners, who usually have access to subsidized electricity, use six to seven times the amount of energy as those with licenses.

The same month, Iran announced a temporary halt to all cryptocurrency mining, only a day after the energy minister apologized for widespread power shortages.

Authorities lifted the prohibition in mid-September.

How Cryptocurrencies Can Be Used To Overcome International Restrictions?

According to Iranian news reports, authorities frequently conduct raids on "illegal cryptocurrency farms."

To generate, or mine, Bitcoin and other cryptocurrencies profitably, vast numbers of computers must be committed to solving deliberately complex equations - an effort that uses more energy globally than some whole nations.

An Iranian official said last month that cryptocurrencies might be used to circumvent international restrictions imposed on the Islamic Republic.

He was speaking while the Iranian parliament debated research on the size of the country's cryptocurrency business and how to properly use the technology.

According to the research, around 19,500 Bitcoins are produced annually in Iran, compared to 324,000 globally, and approximately 700 Bitcoins are exchanged daily in the nation.


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