Iran's Power Crisis: Is Bitcoin Mining Siphoning Energy?

As winter approaches, Iran is facing rolling blackouts, leaving people and businesses in the dark. The country’s energy woes are a blend of many factors, including economic mismanagement, international sanctions, and, perhaps surprisingly, a cryptocurrency boom. Bitcoin mining, which demands vast amounts of electricity, has been suspected of contributing to the power outages. Iran’s power company CEO, Mostafa Rajabi, even hinted at unauthorized mining operations. The energy crisis is a reflection of Iran’s broader economic struggles. Sanctions have limited its ability to import fuel, leading to dwindling reserves. Meanwhile, bitcoin’s value skyrocketed, possibly drawing more miners to set up shop illegally. With free and subsidized electricity in certain areas, bitcoin farms have proliferated, hidden in apartments and private homes across the country. Iran’s President Masoud Pezeshkian has called for energy conservation, but the problem runs deeper. The government offers rewards to catch unlicensed miners, yet their operations continue to strain the grid. The issue is complex, with climate change and aging infrastructure also playing roles, but bitcoin mining adds a unique dimension to Iran’s power crisis.