Cryptocurrency Mining Impact on Iran's Power Grid. 🪙🇮🇷
Cryptocurrency mining strains Iran's power grid, causing an "unusual" 7% increase in electricity consumption in Khordad. The Energy Ministry links the spike to mining activities, leading to instability. Measures include shutting down farms and considering pricing policies for mining power use. Two mining farms in Yazd, with around 1,000 bitcoin machines, were recently closed due to their impact on the grid.
▪️Power Consumption and Subsidized Electricity
The Energy Ministry spokesperson, Mostafa Rajabi, highlighted that the power used for mining each Bitcoin equals the consumption of 24 residential units for an entire year. Reports suggest that the relatively low electricity costs in Iran, heavily subsidized by the government, have attracted an increasing number of cryptocurrency miners, including those from foreign countries.
▪️Impact of U.S. Sanctions and Cryptocurrency
Iran's cryptocurrency mining surge is linked to U.S. sanctions, limiting financial transfers. Cryptocurrencies, like Bitcoin, offer Iranians an alternative for secure transactions amid restricted banking systems.
▪️Government Response and Future Considerations
Iran is considering pricing policies for cryptocurrency miners to tackle a surge in electricity consumption. No specific pricing has been determined, but the government aims to address strain on the power grid. Discussions also include the potential launch of a state-backed cryptocurrency to aid financial transactions amid sanctions.
▪️International Interest and Investments
Iran's relatively cheap electricity has attracted interest and investments from foreign cryptocurrency miners. Blockchain researchers from Tehran-based crypto-startups have reported meetings with investors from Spain, Ukraine, Armenia, and France, indicating a growing interest in cryptocurrency mining opportunities within Iran.
