- Iran announced a reward of $20 to one who tips the authorities of an illegal crypto mining operation.
- Power grids in Iran are failing to fulfill the skyrocketing demand for electricity, as per a national media outlet.
- According to a power grid official, the nation’s power consumption reached 80,000 MW by August 2024.
Several nations have made billions out of cryptocurrencies, but some are underdeveloped with significant natural resources and are facing severe threats from crypto miners.
Power shortage is evolving as one of the biggest problems for the nations favoring crypto mining and other related activities. In the entire process of digital asset mining, a massive amount of electricity is consumed due to the Processors, GPUs, Antminers, and other devices used.
As per recent information, Iran has announced a reward of $20 to one who tips the authorities about the illicit ongoing crypto mining in the region. The nation has been battling severe power outrage for the past few quarters.
Due to climate uncertainties, Iran is facing severe heat waves, and recently, the nation recorded its 50-year highest temperature. Obeying the worsening weather conditions, the demand for consumption skyrockets, and regional power grids fail to fulfill the needs.
Mostafa Rajabi Mashhadi, the Chairman of the Board and Managing Director of Tavanir Company said, “Opportunistic individuals have been exploiting subsidized electricity and public networks to mine cryptocurrencies without proper authorization.
This unauthorized mining has led to an abnormal surge in electricity consumption, causing significant disruptions and problems within the country’s power grid.”
“A bounty of one million tomans (approximately $20) will be awarded to individuals who report every single unauthorized cryptocurrency mining equipment, he said.”
“So far, more than 230k illegal cryptocurrency mining devices with a power consumption capacity of 800 to 900 megawatts have been discovered. Their electricity consumption is equivalent to that of the Markazi Province,” Rajabi concluded. “Providing this amount of electricity would require the construction of a 1,300-megawatt power plant.”
Iran’s 2024 Electricity Consumption
The nation’s electricity consumption grew significantly after the severe heatwaves. Tehran Times reported on August 07, 2024, that the electricity consumption rate in Iran has reached 80,000 MW, as per an official.
Source: Statista
The National Power Grid of Iran receives approximately 1 million fresh registrations annually, from which 20% of stakes are held by other sectors, excluding household usage and crypto mining.
By the end of Q2 2024, the Iran Grid Management Company (IGMC) reported that the nation’s peak hour electricity consumption reached approximately 69.091 GW, exceeding the same period last year’s consumption by over 2.0 GW.
Other Crypto-Mining Updates
In an August 2024 filing, Riot Blockchain, a leading cryptocurrency and Bitcoin miner, notes that it has bought 1 Million additional shares of its contender Bitfarms Ltd.
Earlier in May 2024, Reuters reported that Laos saw a sudden surge in the demand for electricity due to increased crypto minings and dire climatic circumstances. Market experts say crypto miners majorly opt for nations with low electricity costs and a favorable environment.
As per available information, Russia is among the top locations cryptocurrency miners prefer.
In July 2024, an energy official of Texas noted in a media appearance that High temperatures, rapid population growth, and an influx of cryptocurrency and artificial intelligence companies will continue to squeeze Texas’ power grid.
Crypto Market Price Update
The fear and greed index powered by CoinMarketCap is at 43, reflecting neutrality; however, the global crypto market capitalization lost 3.38% in the past 24 hours.
Bitcoin’s price is tumbling; as of this writing, it is trading at $58,000, experiencing an intraday decline of 4.28%. Despite these short-term setbacks, BTC has achieved significant milestones since the start of 2024, reaching an all-time high of $73,750 on March 14 this year.
On the other hand, the Ethereum blockchain saw a spike in total registered addresses following the approval of much-awaited Ether spot ETFs. The constant approval of spot ETFs has refueled the popularity of digital assets.
