‘they [spread out] “to avoid detection.”

In October and November, the Iranian capital, Tehran, experienced frequent power outages, and citizens suspect that some unauthorized activity may be making matters worse.

What is happening?

According to news agencyCryptocurrency mining is blamed for the inability of homes and businesses in Tehran to access energy.

While Iran faces energy problems, with fuel reserves running low and supplies selling off, the increase in power outages came at around the same time that the value of the cryptocurrency surged following Donald Trump’s presidential win.

Cryptocurrency mining is Energy-intensive activity Because of the energy needed to run specialized computer systems and keep them cool.

In low-income areas of Iran, electricity is provided free of charge, including to mosques and schools. Miners are suspected of taking advantage of this leveraged power to operate cryptocurrency mining centers.

In August, Mostafa Rajabi, CEO of the Iranian government-owned energy company, said: “Unfortunately, some opportunistic and exploitative individuals are using subsidized electricity, public grids and other resources to mine cryptocurrencies without a license.”

Masih Alavi, CEO of a mining company licensed by the Iranian government, He told the Associated Press: “[Some miners] They distribute their devices across several apartments to avoid detection.”

Why is cryptocurrency mining a concern?

In Iran, these outages affect some of the poorest citizens, adding to the hardships faced by those who are already suffering.

But the impact of cryptocurrency mining on the planet is also worrying. According to a study from International Monetary Fund“Cryptocurrency mining and data centers together will account for 2% of global electricity demand in 2022.”

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The International Monetary Fund cited data from the International Energy Agency suggesting that this could rise to 3.5% by 2025.

Although renewable sources make up an increasing part of the global energy mix – through solar, wind and geothermal generation, for example – There is still a heavy reliance on dirty fuel By energy companies to generate electricity. In addition to putting significant strain on the grid and causing power outages, energy use from cryptocurrency mining also encourages energy companies to burn more coal, oil, and energy. Natural gas To meet the demand.

Because burning dirty fuels releases greenhouse gases, this will exacerbate rising global temperatures that lead to longer, stronger, and more regular periods. Extreme weather conditions Such as droughts HurricanesFloods and fatal Storms.

In reality, The Associated Press noted Iran suffered droughts in 2024, which limited the energy that could be generated by hydroelectric dams, further affecting citizens’ access to energy.

What is being done about cryptocurrency energy use?

Efforts are being made to reduce the polluting impact of cryptocurrency mining. In Switzerland, for example Canton Bern He proposed a bill that would use excess energy generated by the grid to power mining activity, which would in theory reduce stress on the power grid and make use of wasted energy.

Furthermore, most new professional cryptocurrency mining companies have learned that it is better to avoid grid dependency, and it is smarter to invest in renewable energy that does not require ongoing, ongoing fuel costs. Some analysts even say Bitcoin is Driving innovation and investment In renewable energy. But problems persist in the meantime, including a professional mining company called… Jill Greenidge Which works a Natural gas The power plant has drawn complaints from nearby residents because of its pollution in upstate New York.

Meanwhile, citizens in proposed cryptocurrency mining areas are backing away from such plans One Iowa community They are concerned that the noise made by these facilities could disrupt the animals, while the proximity to schools has also been an issue.

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