• Thu. Feb 22nd, 2024

Iran Faces Electricity Crisis Due to Crypto-Mining



Jan 16, 2021

For a very long time, Iran has been facing an enormous amount of crisis and problems. One of the major problems Iran is facing is resistance and unfriendliness from the United States and the European Union. When it comes to gulf countries, the country even faces a lot of opposition due to the Sunni-Shia conflicts in the religion.

One of the most recent crises that Iran faced was the COVID-19 pandemic. Due to the pandemic, more than 50,000 people died in the country from almost a million people that were diagnosed with the coronavirus.

According to recent reports, the country is now facing another problem that is affecting every citizen that is toxic smog and power outages.

The entire country is now covered with toxic smog and blackouts due to the power outages being faced around the country. It has been confirmed by the concerned departments that the main reason behind the power-outages is cryptocurrency mining.

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In the past months, electricity consumption in the domestic sectors has experienced an enormous surge. Due to the high levels of energy consumption being faced from the domestic level, the power-plants have started running short on the power supply.

To meet the electricity requirements in the cities, the power-plants have now resorted to low-quality fuel oils. Another reason for switching to low-quality fuel oils is because the country is now facing high-quality natural gas shortages. The information has been shared by the news agency that is formed of the semi-official Iranian students.

However, the Oil Minister of Iran, BijanNamdarZanganeh denied all these claims during a press conference. He assured that the government has not approved the power-plants to utilize fuel oil to generate electricity.

There are several power plants in the country that have been shut down so far, resulting in several power outages in the cities. Even the capital of Iran ‘Tehran’ is also facing power-outages due to the shortage of electricity supply in the country.

The government has announced that one of the main reasons for electricity deficiency is attributed to the mining of Bitcoin (BTC) and other cryptocurrencies. It has been revealed that during the mining process, the computer systems or mining units consume a large amount of power for transaction verification.

The country is experiencing mass cryptocurrency adoption in the public sector, therefore, energy consumption has been increasing in the domestic sector. Similar to Venezuela, Iran has also been targeted by the United States as several sanctions have been imposed on the country.

As per the sanctions, the country is banned from making any financial deals with foreign companies and institutions. This is the main reason that the public in the country is now shifting to crypto-blockchain technology.


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