- Reasons for the Reward Program
- Scope of the Problem
- Global Crypto Mining Situation
Iran has introduced a monetary reward for reporting illegal crypto mining. This step is taken in an attempt to cope with power shortages due to extreme heat.
Reasons for the Reward Program
Iran announced a reward of 1 million toman (about $24) for each report of illegal crypto mining to combat power shortages during extreme heat. Temperatures in some parts of the country have reached 113 degrees Fahrenheit (45 degrees Celsius), putting a severe strain on the power grid.
Scope of the Problem
Iranian authorities have already discovered 230,000 illegal crypto-mining rigs consuming up to 900 megawatts of power. This is equivalent to the consumption of a province with 1.4 million residents. It creates significant disruptions in power supply, especially in extreme temperatures.
Global Crypto Mining Situation
Crypto mining is an energy-intensive process using specialized computers to solve cryptographic puzzles. The most well-known cryptocurrency mined in this way is Bitcoin. This April, Bitcoin rewards were halved, leading to financial losses for many miners. In some countries, like Venezuela, crypto mining has been banned due to excessive energy consumption.
Iran is actively combating illegal crypto mining by offering rewards for reports on such incidents. However, the issue of crypto mining and related energy consumption remains relevant worldwide.
