first published on July 1, 2019 by Will
As US sanctions against Iran continue to squeeze their economy, Iranians are mining bitcoin in an attempt to circumvent the financial restrictions, and it’s taking a heavy toll on their power grids.
According to local officials, Iranian energy consumption spiked nearly 10 percent in the last month, and that usage is being pinpointed to Bitcoin mining operations. The amount of electricity needed to produce a single Bitcoin could power an average property for over 20 years.
Iranian authorities have so far responded by raiding multiple “illegal” Bitcoin mining facilities and have seized over a thousand computers. However, they understand why people are doing it and are considering placing a tariff on mining operations.
Bitcoin cryptocurrency uses peer-to-peer technology that carries out transactions over a decentralized, public, open-source network, meaning it doesn’t go through banks nor is it subject to international fees or currency exchange rates. The essence of cryptocurrency makes it nearly impossible to effectively regulate. For these reasons, Bitcoin has been highly attractive to international terror organizations to receive funding from across the globe and is also seen as an option to avert sanctions as with Iran.