The electricity supply of every nation is limited, and their demand is more or less growing at a steady pace. But due to the advent of crypto mining, this demand for electricity has increased suddenly. And this has happened especially in countries where electricity is relatively cheaper. Therefore, while larger countries are still able to keep up with the demand, smaller countries are struggling. This is the reason crypto miners were ordered to halt operations in Iran to prevent winter blackouts.
Iran’s mining industry
The mining companies in Iran are having a tough time. They were asked to halt their mining operations during summer 2021 as well. After this, some selected mining companies were allowed to start mining again in September, but now the authorities have put a brake on it again. They have nothing to do, like the consumption of electricity consumption during crypto mining is high, which has caused a supply shortage.
Do note that this is not just for unauthorized mining companies, but even registered ones have to follow the orders. The Iran Power Generation, Distribution, and Transmission Company, Tavanir, has asked mining companies to unplug their hardware. This will prevent the citizens of Iran from suffering from blackouts during Winter when the electricity demand rises in general.
Iran’s electricity-saving efforts also include turning off lamposts in safe areas at night and keeping strict supervision on any consumption. This shows that even without mining, the demand is really high and it is getting difficult to meet the requirements.
The problem and solution
Licensed miners aren’t happy with this step of the government for obvious reasons. But the even greater or more important one is the fact that while they consume nearly 300 MW electricity per day, the illegal miners burn nearly 3000 MW per day which is very high. Currently, there are two solutions to this. First, the authorities need to find out illegal mining centers in the country and shut them down. And secondly, the licensed miners can make use of solar power or other sources of renewable energy to keep mining through the year.
What are your thoughts as crypto miners were asked to halt operations in Iran? And do you think that the right course of action here would be to use renewable energy resources? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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