Iran faces power outages as Bitcoin surpasses $100,000

Iran has been grappling with rolling power outages across its capital and nearby provinces, raising concerns over the role of unauthorised Bitcoin (CRYPTO:BTC) mining in straining the nation's energy grid.

The country’s energy demand has consistently increased, exacerbated by international sanctions and mismanagement of resources.

Reports indicate that some residents and industries have resorted to measures like reducing air conditioner usage to alleviate pressure on the grid, especially during milder fall weather.

Despite these efforts, the frequency of outages has escalated, coinciding with Bitcoin’s significant price surge to $100,000 in early December.

Local officials, including Mostafa Rajabi, CEO of the government-owned power firm, suspect that unregulated crypto mining activities may be contributing to the crisis.

Rajabi noted that many miners exploit Iran’s heavily subsidised electricity to operate their rigs, often without authorisation.

These operators reportedly use tactics such as deploying rigs in rented apartments and employing VPNs to evade detection.

President Masoud Pezeshkian has called for transparent accountability regarding the energy shortage, acknowledging the use of mazut, a high-polluting fuel, to temporarily address the deficit.

However, reliance on such fuels further highlights the systemic issues within Iran’s aging energy infrastructure.

Crypto mining has historically posed challenges to energy grids in other nations like Kazakhstan and Venezuela, with similar patterns emerging in Iran.

Masih Alavi, CEO of crypto mining firm Viraminer, explained that detecting unauthorised operations remains a significant challenge due to miners’ decentralised setups.

As Tehran faces continued energy disruptions, policymakers are urged to strike a balance between addressing the energy crisis and regulating crypto mining activities to mitigate their impact on the power grid.

At the time of reporting, the Bitcoin price was $104,652.