Jan 18, 2021 11:17:00

'The power shortage is due to Bitcoin,' the Iranian government announced

Due to the effects of the cold wave that has continued since the end of 2020, the supply and demand of electricity is

rapidly increasing nationwide in Japan, but it is reported that the supply of energy is also tight in Iran. In response to a series of large-scale power outages, the Iranian government issued a statement that 'power shortages are partly due to Bitcoin mining .'

Massive blackouts have hit Iran. The government is blaming bitcoin mining. --The Washington Post
https://www.washingtonpost.com/world/2021/01/16/massive-blackouts-have-hit-iran-government-is-blaming-bitcoin/

Bitcoin Mining Is to Blame, at least Partially, for Massive Blackouts in Iran, the Nation's Government Claims
https://www.crowdfundinsider.com/2021/01/171315-bitcoin-mining-is-to-blame-at-least-partially-for-massive-blackouts-in-iran-the-nations-government-claims/

The Washington Post reported on January 17, 2021 that 'massive power outages and air pollution are becoming more serious in Iran.' According to the newspaper's report, in Iran, where economic sanctions from the United States continue, the demand for natural gas for heating homes is rapidly increasing, and some power plants are suspending operation due to lack of fuel. It has been pointed out that power outages have frequently occurred due to power shortages associated with this, and that air pollution in the capital city of Tehran has reached dangerous levels as a result of the use of poor fuel in operating power plants.

by Ivan Mlinaric

The Washington Post points out that 'the power industry has been chronically inefficient in Iran due to aging power generation facilities and corruption of government-affiliated power companies,' but the Iranian government said, 'Power shortages. Is one of the causes of bitcoin mining . '

Iran's state-run power company Tavanir on January 13, 'for the consumption of energy is large, Kerman Province was closed a large-scale encryption assets Center in' the announcement was. Tavanir reportedly has the authority to shut down miners without permission from the government, and in December 2020 alone, nearly 500 excavation sites were identified . Iran's electric power company generates electricity with a subsidy from the government, so if you mine crypto assets without permission from the government, it will be considered as a loss to the national energy network and you will be fined.

'Power outages are due to excessive energy use by illegal miners,' Tavanir spokeswoman Mostafa Rajabi Mashhadi told the state-run Iranian news agency (IRNA). 'The government is investigating unauthorized mining farms ,' said Ali Vaezi, a spokeswoman for President Hassan Rouhani.

The crypto asset industry is opposed to these government claims. Ziya Sadr, a crypto asset researcher in Tehran, told The Washington Post, 'The amount of electricity consumed by mining is negligible in terms of national consumption and has nothing to do with power outages. It's an open fact that Tehran's power industry mismanagement and old power outages don't support Iran's energy network. '

On the other hand, some have acknowledged the government's claim that 'Iran's electricity prices are too low, which has spurred the situation.' Ali Beikverdi, an Iranian cryptocurrency researcher living in Seoul, South Korea, told us, 'A country with a large land area and low electricity is the best place for Bitcoin mining. In South Korea, electricity costs are high. So it's not profitable. '