- Bitcoin’s recent rally to an all-time high of over $ 40,000 has had unintended consequences in some parts of the world. According to the WuBlockchain report, cryptocurrency mining activities in Iran may have caused power outages in the country.
Bitcoin’s recent rally to an all-time high of over $ 40,000 has had unintended consequences in some parts of the world. According to the WuBlockchain report, cryptocurrency mining activities in Iran may have caused power outages in the country.
Mining companies are ordered to close
Iranian officials ordered the operations of licensed BTC mining companies to cease as of January 14. Previously, authorities shut down 1,620 illegal cryptocurrency mining farms that used 250 megawatts of electricity in the past year.
According to Shijieshuo, Iran has halted all local Chinese Bitcoin mining companies that hold legal licenses on January 14. According to statistics from the Bitooda website, Iran is the third largest Bitcoin holder in the world after the United States and China, 8% of total. pic.twitter.com/fT7S9xrHPz
— Wu Blockchain (@WuBlockchain) January 15, 2021
Crypto money mining caused power outages
The report shows that most crypto mining companies are Chinese. The increase in bitcoin price has created strong incentives that attract Chinese investors to mining activities. Power outages were reported in 11 of Iran’s 31 provinces.
Following the interruptions, residents began to express their displeasure, and the media attributed the failure to Bitcoin mining. The government did not explain the reason for the power outages, but decided to put pressure on Bitcoin mining pools. The increase in the price of BTC coincides with the decline in the cost of producing a Bitcoin at a low point in Iran.
Operations are moving underground
While legalizing the crypto mining industry, the Iranian government hoped it would stimulate the economy and bring more taxes. Crypto miners initially welcomed the move. That changed, however, after miners realized how high miners’ electricity tariffs were.
They went underground with their operations to avoid these tariffs. Since then, energy companies have been hunting them, along with the authorities. According to the report, Tavanir, where most of the crypto miners have stolen their power, has the authority to shut down such illegal transactions.