Georgia Hunts Crypto Miners Using Subsidized Electricity in Historic City – Bitcoin News

Record-high electricity consumption caused by illegal crypto farms in northwestern Georgia has caught the attention of authorities in the capital, Tbilisi. The central government and local utilities are working to address the power shortage in the Svaneti mountains.

As tourism hits by pandemic, people in Georgia turn to cheap energy for cryptocurrency mining

The government of Georgia, a small country in the Caucasus region, has teamed up with energy distribution company Energo-pro to address the growing number of illegally mined cryptocurrencies in the Svaneti region. The country’s Minister of Economy and Sustainable Development, Natia Turnava, announced the move at a press conference this week.

The electricity consumption of the mines around the ancient town is abnormally high Mestia The New Georgia News Agency reported that the topic had been going on for a whole month. Svaneti attracted miners by introducing low electricity prices for businesses working in the mountains. Residents of Mestia receive free electricity.

Until the end of December, the residents of Svaneti had to endure a system of limited electricity supply. Underground crypto miners have been blamed for grid shortages and damage. Minister Turnava commented:

Of course, illegal use of electricity is unacceptable, especially with the home mining problem that exists there. We are working with the local government and Energo-pro Georgia, which powers Svaneti, to gradually solve this problem.

Residents of Mestia staged several demonstrations demanding the closure of the mine and accusing local authorities of protecting miners. Meanwhile, Energo-pro Georgia is threatening to raise electricity prices in the region. Despite these and protests, consumption has not diminished.

“Consumption this year has increased by 237 percent compared to previous years,” the city of Mestia said in a statement last month. Local authorities are also urging residents involved in digital currency minting to abandon the activity.

Natia Turnava expressed hope that people in the area would not risk jeopardizing the tourist season. With beautiful landscapes, medieval towers and ancient traditions, Svaneti and Mestia have attracted thousands of tourists over the past decade. However, with the number of tourists declining during the Covid-19 pandemic, locals have found alternative sources of income in the mining industry.

Georgia becomes Mining Hotspot A few years ago, the country became the second most profitable location for bitcoin miners after China. The country also ranks second in electricity consumption for cryptocurrency mining, according to a 2018 study by the Cambridge Centre for Alternative Finance (CCAF). As of August 2021, its share of the global average monthly hashrate is 0.18%.

tags in this story

cryptocurrency, crypto farm, crypto miner, crypto mining, cryptocurrency, cryptocurrency, deficit, Electricity, vitality, Georgia, Georgian, historic, Mestia, miner, mining, Pandemic, strength, regime, area, shortage, supply, Svanetti, travel, tourists, town

Do you think the Georgian authorities will be able to solve the problem of electricity supply in the Svaneti region? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.

Image Source: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for reference only. It is not a direct offer or an invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin Network Does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned herein.

Source link

Recommended For You

About the Author: