Iran imposes 3-month ban on licensed bitcoin mining facilities due to excessive energy use

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Iran has ordered all licensed Bitcoin mining facilities to immediately halt operations in order to reduce pressure on the electricity supply. Iran has announced a three-month ban on the operation of Bitcoin mining centers. To mine a Bitcoin token, you have to solve complex proof-of-work algorithms on advanced computers. Since these machines must be plugged in at all times, they engulf loads of electricity and can disrupt the overall power supply of a region.

Mostapha Rajani Mashhadi, the director of Iran Grid Management, made the announcement, aiming to release electricity up to 209 megawatts and distribute it among Iranian establishments for the winter, Zycrypto reported.

The ban will continue until March 6, 2022.

Iranian authorities will also crack down on illegal Bitcoin mining centers that use more than 600 megawatts of electricity, which would otherwise be expected to reach residents of the country.

This is not the first time that Iranian authorities have identified the stress of Bitcoin mining on its power grid.

Also in May 2021, Iran implemented a four-month ban on Bitcoin mining that is believed to have caused blackouts in several parts of the country.

According to Cambridge researchers, mining Bitcoin consumes around 121.36 terawatt hours (TWh) of energy per year.

Between January 1, 2016 and June 30, 2018, mining operations of four major cryptocurrencies released up to about 13 million metric tons of carbon dioxide, according to a research report last year.

The massive nature of the electricity consumption of the crypto mining process has raised concerns in several parts of the world.

Recently, crypto miners were accused of over-exploiting electricity and causing blackouts in the Irkutsk region in eastern Russia. Authorities have revealed that electricity use in the area increased 108% last year, with many residents engaged in mining from homes, balconies and garages.

Last year, after China banned all crypto-related activities, Tesla chief Elon Muskhad said the power shortage could be a major factor behind China’s move.

“Much of southern China is currently experiencing random power outages because demand for electricity is higher than expected. Crypto mining could play a role in that, ”Musk said at the time.

As of November 2021, the Electric Reliability Council of Texas (ERCOT) estimated five times the energy load to support crypto mining and data centers.

Some regions are trying to find environmentally friendly ways to facilitate crypto mining, as part of the global expansion of the crypto industry as a whole.

In September 2021, Francis Suarez, the mayor of the US city of Miami, proposed to create a Bitcoin mining facility near a nuclear power plant in the state of Florida.

A volcanic geothermal-powered Bitcoin mining facility is also being built in the Central American country of El Salvador to power mining through renewable energy.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting Founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Check out the latest news from the Consumer Electronics Show on Gadgets 360, in our CES 2022 hub.

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