Crypto Mining Crisis in Iran

Iran is facing a major challenge attributable to the high energy consumption of cryptocurrency mining operations. According to Mohammad Allahdad, deputy director of power generation, transmission, and distribution of Iran’s power company, Tavanir, crypto mining operations eat nearly 2,000 megawatts (MW) of electricity. This is such as the output of two Bushehr nuclear reactors and represents around 5% of total electricity consumption.

The Impact on Power Deficit

The high energy consumption of crypto mining operations is having a major impact on Iran’s power deficit. Allahdad stated that it accounts for as much as 20% of the present power deficit, which is a major and alarming figure. This is especially concerning through the summer months when electricity demand peaks attributable to using air conditioners, agriculture, and industrial production.

The Dangers of Crypto Mining

Using power for crypto mining during high-demand days will not be only illegal and unethical but in addition harmful. It risks voltage drops, fuse failures, damage to household appliances, and even fire hazards. Crypto mining devices produce intense heat, and there have been multiple reports of fires linked to mining rigs, a few of which have spread to neighboring homes.

Illegal Mining Operations

Authorities say that abandoned homes, empty shops, warehouses, and industrial buildings are sometimes repurposed for clandestine mining operations. These facilities steadily feature high electricity usage and surveillance cameras, which function red flags for investigators. Identifying these operations is difficult, especially in large industrial areas, which is why public cooperation has been crucial.

The Cost of Crypto Mining

Producing a single Bitcoin with older mining devices can eat as much as 1 million kilowatt-hours (kWh) — such as the annual power use of 440 Iranian households. Even newer miners with higher efficiency still eat significant amounts, with average power usage per unit ranging between 2 to three.5 kW. Each device operates 24/7, consuming as much power as 12 households.

Crackdowns on Illegal Mining

As enforcement intensifies, seizures of mining equipment have surged since last yr. Over 250,000 illegal devices have been seized across various provinces, with most units hidden in abandoned homes, rural farms, industrial ruins, and suburban villas. Recently, 108 mining rigs were confiscated within the southern city of Ahvaz, and 445 cryptocurrency mining devices have been identified and confiscated within the Markazi Province because the starting of the present yr.

Preserving Power for Citizens

Iran’s subsidized electricity stays amongst the most affordable on the planet. However, with electricity consumption hitting recent records, the country cannot afford to disregard the problem of illegal crypto mining. Every illegal miner that’s unplugged helps preserve power for residents. The CEO of Tavanir, Mostafa Rajabi Mashhadi, emphasized the importance of addressing this issue to make sure that residents have access to the facility they need.

Conclusion

In conclusion, the crypto mining crisis in Iran is a major challenge that should be addressed. The high energy consumption of crypto mining operations is having a considerable impact on the country’s power deficit and can also be posing a risk to public safety. It is important for the authorities to proceed their crackdown on illegal mining operations and for residents to cooperate in reporting these activities. By working together, Iran can preserve its power resources and make sure that residents have access to the electricity they need.