--- title: "Iran Blames Bitcoin For Massive Electric Grid Blackouts" description: "The Iranian government is shutting down some 1,6000 cryptocurrency mining operations after several major power outages sweeped the country." date: "2021-01-25" modified: "2021-01-25" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/iran-blames-bitcoin-massive-blackouts" categories: - "Bitcoin" - "Blockchain" - "Cryptocurrency" - "Future Society" tags: - "bitcoin" - "cryptocurrency mining" - "iran" --- # Iran Blames Bitcoin For Massive Electric Grid Blackouts ![The Iranian government is shutting down some 1,6000 cryptocurrency mining operations after several major power outages sweeped the country.]() *\Image: Image via Pixabay\* Iran's capital of Tehran and several other Iranian cities have experienced major blackouts over the past few weeks, exacerbating an already serious phase of the coronavirus pandemic. Within days, the government decided to crack down on an unusual culprit for the power grid troubles: Bitcoin miners, as the [*Associated Press* reports](). The government shut down some 1,600 cryptocurrency centers across the country, [including legally operating ones](). These operations use warehouses full of industrial machinery to crunch numbers and solve algorithms, an [energy intensive process]() more popularly known as cryptocurrency "mining." Critics, however, argue that Bitcoin simply became the Iranian regime's scapegoat — for not only the blackouts but for rising air pollution as well — and that far more evasive problems are lingering under the surface, according to the *AP*. For one, a sanctions clampdown led by Donald Trump in 2018 led to cryptocurrencies becoming the de facto means of making global payments. "Iranians understand the value of such a borderless network much more than others because we can’t access any kind of global payment networks," Ziya Sadr, a Bitcoin expert in Tehran, told the *AP*. "Bitcoin shines here." Adding to Bitcoin's success story is the fact that electricity is heavily subsidized in Iran. Cheaper energy means higher profit margins for miners. And that inevitably led to illegal mining operations the government is now trying to stamp out with police raids. But is Bitcoin really to blame? Mining cryptos only accounts for less than two percent of the country's energy usage, according to the *AP*'s reporting. "Bitcoin was an easy victim here," Kaveh Madani, a former deputy head of Iran’s Department of Environment, told the *AP*. **READ MORE:** [Iran, pressured by blackouts and pollution, targets Bitcoin]() \[*Associated Press*\] **More on Iran:** *[Iran Says You Can Mine — but Not Spend — Crypto - Futurism]()* ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()