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progree

(11,971 posts)
11. To get around sanctions, Iran embraced Bitcoin. Now with polluted skies and grid failures,
Mon Jan 25, 2021, 10:15 PM
Jan 2021

Iran has been closing even previously authorized Bitcoin miners.

Iran, pressured by blackouts and pollution, targets Bitcoin, AP, 1/22/21

.... For Iran, anonymous online transactions made in cryptocurrencies allow individuals and companies to bypass banking sanctions that have crippled the economy. Bitcoin offers an alternative to cash printed by sovereign governments and central banks — and in the case of Iran and other countries under sanctions like Venezuela, a more stable place to park money than the local currency.

... Iran’s generously subsidized electricity has put the country on the crypto-mining map, given the operation's enormous electricity consumption. Electricity goes for around 4 cents per kilowatt-hour in Iran, compared to an average of 13 cents in the United States. Iran is among the top 10 countries with the most Bitcoin mining capacity in the world — 450 megawatts a day. The U.S. network has a daily capacity of more than 1,100 megawatts.

... Iran's government has sent mixed messages about Bitcoin. On one hand, it wants to capitalize on the soaring popularity of digital currency and sees value in legitimizing transactions that fly under Washington’s radar. It authorized 24 Bitcoin processing centers that consume an estimated 300 megawatts of energy a day, attracted tech-savvy Chinese entrepreneurs to tax-free zones in the country's south and permitted imports of computers for mining.

... On the other hand, the government worries about limiting how much money is sent abroad and controlling money laundering, drug sales and internet criminal groups.

More: https://www.yahoo.com/news/iran-pressured-blackouts-pollution-targets-060359269.html


For perspective, however: "The telecommunications ministry estimates that Bitcoin consumes less than 2% of Iran's total energy production." Still, since it apparently all comes from fossil fuels, this nonsense contributes to global warming and other pollution.

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