Iran is Temporarily Banning Mining Crypto Coins for Energy Consumption
Iran has banned the so-called “mining” of digital coins such as bitcoins in the coming months due to the high energy consumption of computers in those processes. With the ban, Iran wants to prevent power shortages during the summer period.
The ban will take effect immediately and will last until September 22, Iranian President Hassan Rouhani said. He said that about 85 percent of digital coin mining in the country takes place without a license. To detect illegal activities with computers in houses and mosques in this area, even spies are used by the Iranian government.
According to experts, Iran accounts for about 4.5 percent of mining bitcoins in the world. Iran continues to face problems for hydropower plants due to drought, causing frequent power outages in major cities. In the summer period, the power consumption in Iran is higher than normal, for example, due to heat-resistant air conditioners.
Bitcoin works based on blockchain technology, a kind of collective logbook in which all participants keep track of all transactions. That register is updated every 10 minutes with a new “page” with the latest changes. To safely handle any supplement, a complex mathematical formula must be solved. Worldwide, special computer systems are puzzling all day long. That is called mining. Whoever solves the formula is rewarded in bitcoins.
Tesla CEO Elon Musk recently criticized the high energy consumption of bitcoin mining.