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Will Bitcoin mining be the cause of the blackouts in Iran?

In recent days, Iran’s cities have experienced severe blackouts. In this regard, The Washington Post newspaper published an investigation. In particular, it reflects that the current cause of the blackouts may be the product of something unusual: Bitcoin mining.

“Government officials say that Bitcoin mining on cryptocurrency farms, the energy-intensive business of using large collections of computers to verify digital currency transactions. He is partly guilty.

According to the report: “Iran’s state electricity company, Tavanir. It announced Wednesday that it had shut down a major cryptocurrency mining plant. Run by China and Iran in the southeastern province of Kerman. Due to its high energy consumption ”.

In this regard, Rajab Mashhadi, spokesman for the Iranian electricity industry union. It said that a total of 1,620 illegal cryptocurrency companies consuming around 250 MWh of electricity have been shut down.

As a curious fact, the government of Iran offers rewards for information. Obviously about where these cryptocurrency mining farms are located.

Will Bitcoin mining be the cause of the blackouts?

Now, official spokespersons for the Iranian energy industry. They declared that the blackouts suffered in several cities of the country are due to the illegal consumption of electricity. Mainly, for Bitcoin mining activity.

Basically the local authorities. They pointed out that current electricity consumption for mining activity in Iran exceeds the 600 megawatt hour (MWh) quota.

Consequently, the Iranian authorities proceeded to carry out inspections of various mining facilities. Thus disabling up to 1,620 irregular connections. Which, according to the statements, they consumed up to 250 MWh illegally.

Cryptocurrency farms

In short, Iran is one of the countries that have made this business an essential part of their economy. The president of that country, Hassan Rouhani, has let it be known through his spokesmen that these farms would be responsible for the serious electricity supply problems in his country.

According to Ali Beikverdi: «The combination of cheap electricity and high inflation. They have made Iran an ideal destination for Bitcoin mining. ‘

Equipment confiscation

Additionally, in the aforementioned inspections. Local media reported that the authorities confiscated about 45,000 mining equipment for Bitcoin and other cryptocurrencies.

Said equipment would be being fed through direct connections to the electrical system in the capital Tehran and other cities. Skipping the relevant regulations.

In fact, according to Mohammad Hassan Motevalizadeh, the director of Tavanir: “The entire confiscated equipment consumed about 75 MWh. The reduced total consumption corresponds to the use (of electricity) of a city with a population of more than half a million ”.

However, Ziya Sadr, a cryptocurrency analyst in the Iranian community said: “The miners have nothing to do with the blackouts. It is a known fact that mismanagement, the terrible situation of the electrical network. Also, from the obsolete equipment of power plants in Iran, they cannot support the grid. ‘

So is Bitcoin mining to be the cause of the blackouts? Or the deficiency of the country’s electricity grid? Leave us your opinion in the comment box.

I close with this phrase by John Wesley: “Electricity is the soul of the Universe.”

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