Iranian officials seize 1,000 illegal Bitcoin mining machines

1,000 Iranian Bitcoin mining machines have been seized from two abandoned factories in Iran, according to the international news organisation, Reuters.

It’s thought that the machines were taken just days after Iranian officials had complained that the consumption of subsidised electricity had spiked. This had been blamed on cryptocurrency mining.

Electricity subsidy had risen by 7% in a month (ending on June 21st), an Energy Ministry spokesman told the state-run news channel.

Arash Navab, a power official in the central province of Yazd, told Reuters: “Two of these Bitcoin farms have been identified, with a consumption of one megawatt.”

The legality of Iranian Bitcoin

Researchers at the BBC suggest Bitcoin is being used more and more in Iran as a way of caring for finances.

It is unknown how long the farms had been operating for, although, it is thought that Bitcoin mining is still happening in various locations across Iran.

Cryptocurrencies are forbidden in Iran. Due to money-laundering concerns, in April 2018, Iran’s central bank banned trading with any type of cryptocurrency, including Bitcoin.

Despite the ban, designers in Iran have controversially submitted plans to an architecture competition for a cryptocurrency mining skyscraper water park that uses hydro-electricity to power Bitcoin miners.

What are Bitcoin Mining Machines?

According to Investopia, Bitcoin Mining Machines work by using “high-powered computers that solve complex computational math problems… when computers solve these complex math problems on the Bitcoin network, they produce new Bitcoin, not unlike when a mining operation extracts gold from the ground.”

Investopia also says that, “by solving computational math problems, bitcoin miners make the Bitcoin payment network trustworthy and secure, by verifying its transaction information,”

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