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The impact of the cost of electricity for Bitcoin mining on the migration to cheap electricity
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Amireh Nikkhah *   , Mostafa Rajabi Mashhadi |
| Tavanir Co. , nikkhah.a@gmail.com |
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Abstract: (2 Views) |
| Bitcoin, as the world’s first and most important cryptocurrency, is not only a financial instrument but also a complex technological and economic phenomenon that has had a significant impact on financial markets, the IT industry, and even the world’s energy infrastructure. One of the most important and controversial aspects of this network is the extremely high electricity consumption in the mining process, which uses the Proof of Work algorithm. This article, with an analytical approach, comprehensively examines the electricity consumption of the Bitcoin network, compares it with electricity consumption in major countries and industries, analyzes the cost structure of mining, and the importance of cheap electricity in miners’ profitability. Then, cryptocurrency mining policies in Iran are reviewed, and based on official data and statistics, concerns arising from increased mining and its impact on the electricity industry are analyzed. Next, the adequacy of current policies is assessed and solutions are presented to balance the development of the mining industry and maintain the stability of the electricity grid. The findings show that although electricity's share of Bitcoin's market value is insignificant, at an operational level, energy costs account for up to 80% of the running costs of mining farms, and this has become a major challenge for the electricity industry, especially in Iran, due to the tariff structure and resource constraints. |
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| Keywords: Bitcoin, Tavanir Co., electricity industry, electricity cost, electricity imbalance |
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Full-Text [PDF 632 kb]
(1 Downloads)
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Type of Study: Research |
Subject:
Energy Management, Conservation and Rational Use of Energy
Received: 2025/08/31 | Accepted: 2025/09/8 | Published: 2025/05/31
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