Summary
Iran is experiencing widespread power outages, with cryptocurrency mining suspected as a contributing factor.
Bitcoin mining, which requires massive electricity, has surged in Iran due to subsidized energy and rising bitcoin prices, recently hitting $100,000.
Officials blame unauthorized miners using free or subsidized electricity, while public frustration grows over blackouts.
Iran’s energy crisis is compounded by sanctions, aging infrastructure, low fuel reserves, and climate change.
Authorities struggle to balance energy needs amid allegations of mining by paramilitary groups and fears of economic dependence on volatile cryptocurrencies.
But Bitcoin only use excess energy that otherwise wouldn’t be used! /s
(Yes, this is a real argument they make)
WTF, that logic.
It’s especially painful because some (most?) other cryptocurrencies don’t need energy-hungry mining. Bitcoin was just first. It’s like everyone’s still buying the Apple I.
a basic economics class will say essentially that, just in more words and with the asterisks’ of energy that costs less than what can be earned from mining with it.
No, they’re pretty clear that supply elasticity (of widgets, if it’s just basic) exists too.
In the near future “more electricity than we can use” might actually become a problem on sunny days, but I don’t think a lot of Bitcoins are currently produced that way. And even then, there’s lots of things you can do with free electricity, and most are cheaper to set up than a mining rig.