Iran blames 1600 Bitcoin processing centers for massive blackouts in Tehran and other cities
Cars travel on an unexplained path during a blackout on 20 January 2021 in Teheran, Iran.
Images of Ebrahim Noroozi/AP
The Iranian government blamed the blackouts for the mining of Bitcoin and other cryptocurrencies.
The Times announced that cryptocurrency has been a means of circumventing US sanctions in Iran.
Legal and illicit cryptocurrency farms are both criticized for overloading the power grid of the nation.
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Bitcoin and other forms of crypto-monnaie have been criticized by the Iranian government for power outages that have left millions black.
Many of Tehran's capital and other major towns, including Mashhad, Tabriz and Urmia, have endured frequent blackouts.
Residents went on Twitter to demonstrate the repercussions of people sharing traffic images on unpaved highways.
—InfoWarrior-Reforged January 12, 2021 (@IWarriorTheOne)
—$xori (@xorimaxo) on 13th January 2021
One tweeted a screenshot of what looks to be a dark mall.
—sheer iran, January 13, 2021 (@sheriran95).
According to the Associated Press, Iran has one of the 10 largest cryptocurrency power in the world at 450 MW a day.
Read more: Cryptocurrency earnings shown: Between $60,000 to $400,000, how much would you gain in cryptocurrency?
With the reimposition of U.S. sanctions on Iran by former President Donald Trump, crypto-currency has been a method of bypassing Bitcoin's success, The Times notes.
This has led to the proliferation of thousands of illicit cryptocurrency farms, some of which are located in schools and mosques, Radio Liberty stated.
Al-Jazeera further adds that it is the product of Iran's low-cost power costing four cents kWh compared to an average of 13 cents in the United States.
Now, the government is accusing cryptocurrencies, especially Bitcoin, of straining the grid and causing national blackouts.
Others say "decades of mismanagement" are to blame for the supply of energy.
Authorities also closed 1600 centres, including those lawfully approved to work for the first time, added the Associated Press.
Local media claims that State-owned Tavanir shut down a massive Iranian-Chinese Bitcoin farm amidst electricity shutdowns.
The Washington Post announced that, despite being completely licensed to run, the cryptocurrency center in the south-east province, Kernan, was shut down due to high energy demand.
Mohammad Hassan Motavalizadeh, Tavanir's chairman, said the police had seized 45.000 illegal Bitcoin machines with a low price of 95 MWh of fuel.
According to Al-Jazeera, Bitcoin was estimated at just under $42,000 in early January but has since fallen to about $31,000.
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