Cryptocurrency mining, as an unauthorized activity in the country, has a significant impact on electricity consumption and energy imbalance during the summer season. Researchers have examined the actual share of this activity in the country's electricity consumption, and the results indicate that this mining has caused a 14% imbalance in summer electricity.
Dimensions of Electricity Consumption in Cryptocurrency Mining
According to estimates, the power consumption of cryptocurrency mining (excluding satellite internet) is estimated to be around 930 to 1200 megawatts. This amount of energy accounts for 14% of the total electricity imbalance and about 6% of the total power imbalance in the country during the four warm months of the year. As a result, this activity not only has negative effects on electricity supply during peak demand but also leads to increased electricity prices and reduced public welfare.
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Economic and Social Consequences
Cryptocurrency mining has two major consequences: first, the misuse of energy subsidies that benefit these activities, and second, the imposition of electricity supply restrictions during peak summer and winter demand. These restrictions can lead to a decrease in gross domestic product and a decline in public welfare. In a situation where the country is facing economic and energy crises, these unauthorized activities exacerbate existing problems.
While there are no official statistics in this regard, researchers have used two separate methods to estimate the electricity consumption of cryptocurrency mining: first, the international hash rate index, and second, the analysis of electricity consumption data during nationwide internet outages. These methods have helped researchers gain a better understanding of the impact of cryptocurrency mining on the country's electricity imbalance.
Proposed Solutions
To mitigate the negative consequences of cryptocurrency mining, it is necessary for the government and relevant authorities to investigate and control these activities. Implementing stricter regulations on energy consumption and establishing stricter rules for cryptocurrency mining can help improve electricity supply and reduce energy imbalance. Additionally, educating and raising awareness in the community about the consequences of this type of mining can be effective in reducing demand and improving the country's energy situation.
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