Iran imposes a three-month ban on authorized bitcoin mining facilities due to excessive electricity consumption

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Iran has ordered all authorized bitcoin mining facilities to cease operations immediately to ease pressure on electricity supplies. Iran has announced a three-month ban on Bitcoin mining centers from operating. In order to mine a Bitcoin token, one has to solve complex proof-of-work algorithms on advanced computers. Since these devices have to be constantly connected to the mains, they consume a lot of electricity and can disrupt the entire power supply in a region.

Mostapha Rajani Mashhadi, the director of Iran Grid Management, announced that it would unlock power of up to 209 megawatts and distribute it to Iranian facilities for the winter, Zycrypto reported.

The ban applies until March 6, 2022.

Iran’s authorities will also take action against illegal bitcoin mining centers that are consuming over 600 megawatts of electricity that should otherwise reach the country’s residents.

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

Also in May 2021, Iran imposed a four-month ban on Bitcoin mining that reportedly resulted in power outages 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, the mining operations for four major cryptocurrencies released up to an estimated 13 million tons of carbon dioxide, a research report claimed last year.

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

Recently, crypto miners were accused of excessively consuming electricity and causing blackouts in the Irkutsk region of eastern Russia. Authorities there said that electricity consumption in the area rose 108 percent over the past year, and many residents have indulged in mining houses, balconies and garages.

After China banned all crypto-related activities last year, Tesla CEO Elon Muskhad said power shortages could be a major factor in China’s decision.

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

In November 2021, the Electric Reliability Council of Texas (ERCOT) estimated a five-fold increase in energy loads to support crypto mining and data centers.

Some regions are trying to find environmentally friendly ways to facilitate crypto mining amid the global expansion of the entire crypto sector.

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

A volcanic, geothermally powered Bitcoin mining facility is also being built in the Central American country of El Salvador to fuel mining with renewable energy.

Interested in cryptocurrency? We discuss everything about 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 anywhere you get your podcasts.

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

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