Hasan Rohani cited crypto mining energy consumption as the reason for regional power outages in Iran. He stated at a cabinet meeting that the ban started immediately and would last until September 22nd.
Iran accepted the use of cryptocurrencies in the past years, obliged miners to sell their bitcoins to the central bank in exchange for cheap energy.
The Tehran administration allows crypto coins issued in Iran to be used for the payments of products that are allowed to be imported. The cheap energy expectation of oil-rich Iran attracts miners, especially China.
Why do cryptocurrencies consume a lot of energy?
Bitcoin and other cryptocurrencies are created through a process called mining, using very powerful computers competing with each other to solve very complex math problems. This process consumes very high energy. The fact that the energy used is generally obtained from fossil fuels causes the environmental effects of crypto money mining to be questioned.
Electric vehicle manufacturer Tesla previously announced that cars can be purchased with Bitcoin, but the company’s owner Elon Musk announced that they suspended using Bitcoin in sales due to environmental concerns.