Iran Imposes 3-Month Ban on Authorised Bitcoin Mining Facilities Due to Excessive Power Usage

Iran has instructed all authorized bitcoin mining facilities to immediately cease operations to ease pressure on the electricity supply. Iran has announced a three-month ban on the functioning of bitcoin mining centers. In order to mine bitcoin tokens, complex proof of work algorithms have to be solved on advanced computers. Since these machines need to be plugged in at all times, they carry a load of electricity, and can disrupt the overall power supply in an area.

Iran Grid Management Director Mustafa Rajni Mashhadi announced that the goal is to free up to 209 MW of electricity and distribute it among Iranian installations for the winter, Zycrypto Reported,

This ban will continue till 6 March 2022.

Iran’s authorities will also crack down on illegal bitcoin mining centers, which use more than 600 megawatts of electricity that should otherwise reach the country’s residents.

This is not the first time Iranian officials have identified the stress of bitcoin mining on their power grids.

Also in May 2021, Iran implemented a four-month ban on bitcoin mining. Allegedly Due to which there was power outage in many parts of the country.

According to Cambridge researchersMining bitcoin consumes approximately 121.36 terawatt-hours (TWh) of energy in a year.

Mining operations for the four major cryptocurrencies released up to an estimated 13 million metric tons of carbon dioxide between January 1, 2016 and June 30, 2018, according to a research. report good Claimed last year.

The heavy power consuming nature of the crypto mining process has caused concern in many parts of the world.

Recently, crypto miners were blamed for overuse of electricity and power outages in the Irkutsk region of eastern Russia. Officials there revealed that there was a 108 percent increase in electricity consumption in the area last year, with many residents involved in mining from homes, balconies and garages.

China last year banned all crypto-related activities, Tesla President Elon MuskSaid that the lack of electricity could be a major reason behind China’s decision.

“A lot of South China is having random power outages right now because the demand for electricity is higher than expected. Cryptocurrency mining could play a part in this,” Musk said. said those days.

In November 2021, the Electric Reliability Council of Texas (ERCOT) Estimated Five-fold increase in energy load to support crypto mining and data centers.

Amidst the global expansion of the overall crypto sector, some sectors are trying to come up with eco-friendly ways to facilitate crypto mining.

In September 2021, Francis Suarez, Mayor of the US city of Miami, proposed setting up 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. El Salvador Promoting mining through renewable energy.

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