Iranian Authorities Blamed Crypto Centers For Massive Blackouts In The Country

The Iranian government has blamed Bitcoin and other cryptocurrencies for massive power outages across the country. Much of Tehran, as well as other major cities, including Mashhad, Tabriz and Urmia, have been without electricity on several occasions, Business Insider reports. Twitter has been flooded with videos showing motorists being forced to move through unlit streets.

According to the Associated Press, Iran is among the top ten countries with the largest cryptocurrency capacities in the world - it takes 450 MW per day to mine. Since former US President Donald Trump re-imposed sanctions on Iran, The Times reports that cryptocurrency has become a popular way to bypass these restrictions, leading to a sharp rise in Bitcoin's popularity. As a result, thousands of illegal cryptocurrency farms have sprung up, including those located in schools and even in mosques.

The emergence of a huge number of crypto farms has also been facilitated by the low cost of electricity, which in Iran is only 4 cents per kWh compared to 14 cents per kWh in the United States. Now the government is accusing cryptocurrency, especially bitcoin, of overloading the electricity grid and cutting off electricity across the country.

As a result, the authorities closed 1.6 thousand crypto farms, including those whose activities were initially approved by them. In particular, due to power outages, the state-owned energy company Tavanir was forced to close the Iranian-Chinese bitcoin mining farm. In addition, despite the existence of a license to mine cryptocurrency, a cryptocurrency center in Iran's southeastern province of Kerman was also closed due to high energy consumption.

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