Iranian crypto miners get the blame for a faulty electricity network

29 Jun, 2019
by Alberto Arnaldo
Iranian crypto miners get the blame for a faulty electricity network

Cryptocurrency mining in Iran might not be to blame for the latest disruptions in the electric network of the country. Media versions differ on the issue, but it seems as if heat and lack of maintenance and renewal of the grid might be behind the outages.

Just a couple days ago, Reuters reported on the large consumption of electricity from Iranian miners causing havoc on the country´s system. Apparently, the authorities of the Middle-Eastern state were putting the responsibility for the overloading of the network on the crypto miners, even shutting down some operations. The excessive pressure put into the electricity grid by them had even led to blackouts, allegedly.

However, according to a report from Al Jazeera, published just a few hours ago, the reason for the unstable electrical connection of a large part of the country could be the rising heat on the country, as the summer start to set. The dire situation of the Iranian electricity grid is a reality since years ago, with very frequent outages in the hottest days of the year.

Regardless, it is certain that a discussion has ensued in the country, with mining operations being set into plenty of official buildings such as schools and mosques, which get electricity at extremely low rates. Authorities and government officials are asking for an increase in the price of electricity paid by miners, so that their rates would be in line with those in place for foreign customers of electricity.

With the subsidized energy policy, mining Bitcoin in Iran appears to be quite a profitable business, specially taking into account current rates. Another reason for which miners could be increasing in Iran is the monetary instability caused by U.S. sanctions, which have resulted in shaky volatility for the local currency and inflation of imported goods.

Follow Chepicap now on Twitter, YouTubeTelegram and Facebook!


Should Iran be seizing mining rigs?

(13 votes)

Add a comment

Check out the latest news

You will be logged out and redirected to the homepage