Iran seizes 1,000 Bitcoin mining machines after power spike
  • WORLD

  • 16:41 28 June 2019

Iran seizes 1,000 Bitcoin mining machines after power spike

Authorities in Iran have seized roughly 1,000 Bitcoin mining machines from two former factories, ONA reports citing BBC.

The action was taken following a spike in electricity consumption.

Demand for power rose by 7% in June and cryptocurrency mining was thought to be the main cause, an energy ministry spokesman told local state-run media.

One researcher said Bitcoin was gaining more and more attention in Iran as a potential means of storing wealth.

"Two of these bitcoin farms have been identified, with a consumption of one megawatt," Arash Navab, an electricity official, told state television. Mining cryptocurrencies like Bitcoin involves connecting computers - usually specialised "mining machines" - to the currency network via the internet.

By providing computing power for validating transactions on that network, mining machine owners are rewarded with newly generated coins, making it a potentially lucrative exercise - especially when done on a large scale.

ONA

Tags: Iran Bitcoin world

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