Iran to Give $20 Bounty to Anyone Who Reports Illegal Mining

Iran is offering citizens a cool $20 bounty to snitch on illegal crypto miners. As temperatures soar to a sweltering 49.7°C (121°F), the country's power grid is feeling the burn, and authorities are pointing fingers at unauthorized mining operations.

Key points in this developing story:

• Iran's state power company, Tavanir, is offering 1 million toman (about $20-24) for tips on illegal mining setups
• Over 230,000 unauthorized crypto mining devices have been discovered
• These rigs reportedly consume up to 900 megawatts of power
• Industrial production is facing disruptions due to frequent power outages
• Iran ranks 8th globally in Bitcoin mining, accounting for 3.1% of the global hash rate

As Iran grapples with a scorching heatwave, the country's electricity network is under immense pressure. 

Tavanir's CEO, Mostafa Rajabi Mashhadi, isn't mincing words:

Opportunistic individuals have been exploiting subsidized electricity and public networks to mine cryptocurrencies without proper authorization.

But why is Iran so hot and bothered about crypto mining? Mashhadi claims the electricity consumption of unauthorized miners is equivalent to that of a 1,300-megawatt power plant. To put that in perspective, that's enough juice to power a small city or run about 650 million LED light bulbs simultaneously.

The situation in Iran isn't unique. Countries worldwide are grappling with the energy-intensive nature of crypto mining. In May, Paraguay shut down several illegal bitcoin mines that were siphoning off enough electricity to light up an entire city. 

Meanwhile, Malaysia pointed the finger at crypto miners for an eye-watering $722 million worth of electricity theft between 2018 and 2023. It seems the global game of whack-a-miner is in full swing.

Iran's relationship with crypto has been more on-again-off-again than a reality TV romance. In 2021, the country banned crypto mining due to power shortages and blackouts. But they lifted the ban after the US slapped them with sanctions. Now, with temperatures rising and power supplies dwindling, Iran's playing hard to get with miners once again.

The bounty system is an interesting twist. For the price of a decent meal, Iranians can turn in their crypto-mining neighbors. This approach might seem a bit extreme, but when you're dealing with power outages in 121°F heat, desperate times call for desperate measures.

Iran's energy sector is heavily subsidized, with estimates ranging from $30 billion to $137 billion in subsidies over the past decade. That's a lot of cheap electricity, making Iran a veritable paradise for energy-hungry mining operations. It's no wonder the country ranks 8th globally in Bitcoin mining, rubbing shoulders with the likes of Germany and Malaysia.

Related: Crypto Mining: An Informative Journey into the (Virtual) Crypto Mines

The $20 bounty might seem small, but in a country where the minimum monthly wage hovers around $230, it's not exactly chump change. It's enough to make people think twice about that mysterious humming sound coming from their neighbor's basement.

Meanwhile, as Iran plays cat and mouse with miners, the global crypto mining scene is facing its own challenges. Daily Bitcoin mining revenue has taken a nosedive, plummeting from a 2024 high of $107.8 million on April 20 to a mere $28.7 million. It seems the crypto gold rush isn't quite as golden as it used to be.

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