Bitrabo Editorial
The government of Iran is offering citizens a $20 bounty to report illegal cryptocurrency mining operations as the country faces a severe power crisis exacerbated by an ongoing heatwave.
Heatwave And Power Shortages
The scorching heatwave in Iran, with temperatures reaching 49.7°C, has led to widespread power outages affecting daily life and industrial production. Illegal miners are consuming a massive amount of electricity, putting immense pressure on the national grid.
The Iranian government had previously banned cryptocurrency mining in 2021 due to concerns about energy consumption but partially lifted the ban under economic pressure from US sanctions. Now, officials are taking stricter measures to address the strain on the grid by encouraging the public to report illegal mining activities.
The Bounty System
A new bounty system will reward citizens with one million toman for information leading to the confiscation of unauthorized mining hardware. Reports show that illegal mining devices have consumed 800 to 900 megawatts of power, equivalent to the electricity needs of Markazi Province.
The Broader Implications
The crackdown on illegal cryptocurrency mining in Iran is part of a larger effort to manage the country’s energy resources efficiently. While crypto mining can be profitable, critics argue that the focus on it as a primary cause of power shortages overlooks issues like grid mismanagement and infrastructure investments.
Iran has seen a surge in crypto mining due to its abundant natural gas and electricity supply, creating a complex dynamic that enables the country to bypass sanctions but strains its power infrastructure.