Illegal Bitcoin mining allegedly responsible for Iran’s massive power outage

Illegal Bitcoin mining allegedly responsible for Iran’s massive power outage
  • Iran records large-scale blackouts and smog across vivid cities.
  • Power-heavy cryptocurrency mining and acute shortage of natural gas are likely to be blamed for frequent power outages and pollution amidst the ongoing health crisis.

Ever since multiple reports poured in demonstrating the massive power outage and intense air pollution in Iranian cities, speculations are been made that illegal bitcoin mining and to some extent, shortage of natural gas, might be the primary reason for these incidences.

Attesting the aforesaid, the country’s head of state-run electricity firm- Tavanir- Mohammad Hassan Motavalizadeh raised claims that Bitcoin miners had been consuming over 95 megawatts per hour of the electricity at an ultra-cheap price. He added that another 45MWh of electricity had been potentially saved via implementing modifications at street lighting system in the capital city Tehran and others.

Considering the exploitation of cryptocurrency mining and natural gas mining, the country has reportedly launched a fresh crackdown on illegal Bitcoin mining post its decision to impose interim shutdowns at authorized BTC farms to prevent further controversial power blackouts in some of the prominent cities. That said, the Energy Ministry has as well halted the supply of electricity to the farm owned by a Chinese-Iranian investment firm.

Although Bitcoin investors in the industry have been blaming mining as the reason for recent blackout in the country, a cryptocurrency researcher in the capital, Ziya Sadr, in a statement stated that miners are not completely responsible for the blackouts and the ongoing claims were false.

Sadr reported that BTC mining accounts for a small percentage of the electricity capacity in Iran and power outage is to be blamed to the mismanagement and the very terrible situation of the electricity grid in the country alongside the outdated equipment of power plants that cannot support the grid.

Source Credit: https://www.indiatoday.in/technology/news/story/iran-suffering-from-a-massive-power-outage-illegal-bitcoin-mining-likely-to-be-blamed-1759961-2021-01-17