Iran suffers from power outages due to cryptocurrency mining and nuclear programme

Iran is facing large-scale power outages that have affected the capital Tehran and other major cities. This was reported by the Associated Press. One of the key reasons for the crisis is cryptocurrency mining, in particular bitcoin, which is putting a strain on the country's power system.

What is known about mining in Iran

The Iranian government recognised cryptocurrency mining in 2019, allowing licensed miners to operate with increased electricity tariffs. However, about 85% of mining is carried out illegally, significantly overloading the power grid. In 2021, it was estimated that Iran processed $1 billion worth of bitcoin transactions, and this figure has likely increased significantly since then due to the rise in the value of bitcoin.

The blackouts began when the value of bitcoin soared from $67,000 to more than $100,000 during its historic rise. This energy "appetite" of cryptocurrencies has created serious difficulties for the national power grid, which is already under considerable strain.

Nuclear programme and international pressure

Iran also continues to actively develop its nuclear programme, which is a matter of concern to the international community. In November 2024, Tehran announced its intention to increase the number of uranium enrichment centrifuges in response to IAEA criticism. These actions are straining relations between Iran and Western countries, which fear that Iran may develop nuclear weapons.

A complex situation

The combination of illegal mining, which is exacerbating the energy crisis, and international pressure over the nuclear programme is creating extremely difficult circumstances for Iran. The country needs urgent action to stabilise the situation both domestically and internationally.

Source: Associated Press