Crypto Mining and Cannabis To Blame? – CryptoMode

The United Kingdom has witnessed a staggering rise in electricity theft in the past decade, with a significant 75% increase since 2012. The driving forces behind this alarming trend are cryptocurrency mining, cannabis cultivation, and the escalating cost of living.

Growing Electricity Theft Concerns

Cryptocurrency mining, while lucrative, is notoriously power-hungry, necessitating vast amounts of electricity. The allure of profits has led some nefarious individuals to exploit loopholes, enabling them to mine cryptocurrencies without bearing the cost of electricity.

As reported by the BBC, 2021-2022 saw more than 3,500 instances of electricity theft across the UK. The mechanics of electricity theft primarily involve tampering with or bypassing meters to evade energy charges. Such malpractices expose live wires, often bypassing fuse boxes, amplifying the risk of appliance overheating, fire outbreaks, and in severe cases, fatalities.

The aftermath of the inaugural COVID-19 lockdown witnessed a substantial upswing in electricity thievery activities. The surge underscores a correlation between the pandemic-induced lockdown and the escalating instances of electricity theft.

Spotlight on Cannabis Farms and Crypto Mining

Charlie Pugsley, the Assistant Commissioner at London Fire Brigade, attributes the spike in electricity theft cases to the burgeoning cannabis farming and cryptocurrency mining sectors. A notable case emerged in 2021 when the West Midlands Police unearthed an illicit Bitcoin mining operation. The setup comprised over 100 devices, all rigged to circumvent the electricity supply.

Undeniably, cryptocurrency mining demands hefty capital investment, primarily to cover energy expenses. With the ascent in mining difficulty and hash rate, even legitimate mining ventures are teetering on the brink of unprofitability.

The Global Reverberations

Beyond the UK, the malaise of stealing electricity is resonating globally. For instance, in March 2022, Malaysian authorities grappled with crypto miners who pilfered electricity worth approximately $2 million in 2021. A peculiar case emerged in Venezuela’s Tocorón prison, where criminals operated Bitcoin mining rigs using the facility’s power supply.

Electricity theft exacerbates the financial strain on legitimate mining enterprises and poses severe safety hazards. The burgeoning trend casts a long shadow on the sustainability and ethical aspects of the crypto mining and cannabis cultivation industries.

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