Mining Cryptocurrencies Aggravates Power Outages and Pollution in Iran | Finance

Iran’s crypto mining deepens the country’s energy crisis. Many cities lose power while fossil factories are forced to use low quality fuel. As a result, dense polluted dark clouds have been created over Tehran and other autonomous cities. According to Iranian government officials, the situation is exacerbated by the high and growing power activity of bitcoin and other cryptocurrency mining tools.

Mining Bitcoin (photo: 24 / Flickr Consulting)

Mining Bitcoin (photo: 24 / Flickr Consulting)

COVID-19 and lack of natural gas cause power outages in Iran

As reported by Bloomberg this Wednesday (13), atmospheric pollution has reached dangerous levels. Energy consumption increased steadily in the country stemming from the COVID-19 pandemic, leaving residents at home. As winter comes, the socially isolated population increases the use of natural gas in the country, which is used to heat homes in Iran in temperatures as high as 0 ° C in January. .

A variety of factors have led to the current severe power outages in several cities in the country. Some factories have closed due to lack of gas. Other types of fuels are also decreasing as the use of private cars has increased sharply to avoid crowds on public transport.

Crypto mining evolved and the crisis worsened

US government sanctions have increased mining activity for bitcoin and other cryptocurrencies. As a result, the country is isolated from international financial institutions. In return for economic troubles, Iran provides one of the lowest electricity costs in the world, which has encouraged cryptocurrency miners.

However, mining consumes a large amount of energy to operate powerful machines that verify the legitimacy of transactions on the blockchain network and then create new digital currencies like bitcoin.

Iranian government officials said the current power outage has been exacerbated by this activity and has begun to seize machines from illegal activities in the country. About 6,000 machines were confiscated in Markazi province, as chief executive of Markazi Electric Power Company told ISNA (Iran Student News Agency).

With information: Bloomberg

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