One of the setbacks of investing in cryptocurrency is that it is a very expensive endeavor in terms of electricity as mining a single token can cost thousands of dollars in electricity mining costs and this has influenced activities within the ecosystem worldwide. Many people have been arrested across the world for illegally mining cryptocurrency with stolen electricity and this includes electricity stolen from neighbors and formal institutions. Iran recently had to set up a specific tariff for crypto miners after it was discovered that many where tapping into the national grid to mine cryptocurrency at the subsidized rate.
Now, it seems the problem is on a larger scale as on September 21, 2019 the Armenian National Security Service announced that an IT firm within Armenia had been illegally mining cryptocurrencies from inside a Hydro power plant.
Usually when miners are caught stealing power ,it is reserved to individuals who wish to cut corners but now it seems that entire firms are also taking part in this practice. It was reported that the company had set up my new equipment within the Hydro power plant and has been illegally tapping into electricity for 1.5 years and has stolen in about 1.5 kWh of electricity which is worth roughly $150,000 locally.
Governments are also being kept on their toes and are making sure that the sort of activities do not go un checked as the industry players naturally go towards where we may get electricity for a cheaper rate which is why in the last year, there was an influx of crypto-related films in small towns around the world that had subsidized energy rates. However, these efforts were not always met with friendliness as many locals disapproved of the influx of crypto-related films and Norway ended their subsidy on electricity for crypto films which made the price of mining significantly higher.
With all these factors considered, people who wish to mine cryptocurrency take advantage of whatever options they may have with a report stating that university students are one of the largest groups of crypto miners as they make use of the free electricity within their hostels to mine cryptocurrency. Even as the price of cryptocurrency mining continues to rise, it seems there is no stopping this practice.