The analytical company Arcane Research believes that against the backdrop of the energy crisis in Georgia, it is advisable to develop legal private mining instead of semi-underground.
Jaran Mellerud, the author of a report on the level of development of cryptocurrency mining in Georgia, said that many citizens of the country, in conditions of economic instability, are engaged in cryptocurrency mining in order to improve their financial situation.
“Home mining in Georgia is popular, especially in regions with subsidized electricity. As long as there are subsidies for electricity in some regions of the country, people will continue to create small home mining farms.”
The report states that Georgia uses at least 125 MW of power to mine cryptocurrencies. At the same time, 62 MW are used by mining companies for the production of digital assets on an industrial scale:
“The remaining 63 MW is used by many small private mining farms scattered throughout the country.”
The author of the report writes that Georgians place mining equipment in residential buildings, garages, abandoned warehouses and industrial enterprises. The real bitcoin hash rate in Georgia is in the region of 0.71%, says Mellerud.
“From 100 MW to 125 MW of the total cryptocurrency mining power in Georgia is used for bitcoin mining.”
The hash rate in Georgia corresponds to the average value of the global Bitcoin hash rate, the analyst assures. This is several times higher than the 0.18% hashrate estimate announced by the Cambridge Bitcoin Electricity Consumption Index (CBECI) for Georgia.
The analyst noted that despite Georgia’s loyal attitude towards mining, rising electricity prices may scare away those who want to mine cryptocurrency.
“I don’t believe that the Georgian government wants more cryptocurrencies to be mined in the country, as miners already use almost 10% of the country’s electricity, which contributes to a growing electricity shortage.”
The analyst emphasized that Georgia does not have reserve capacities for the production of cryptocurrencies on an industrial scale. Therefore, supporting the development of legal private mining is the best solution for the country.
In January, Georgia began to crack down on miners abusing free electricity. The Ministry of Economy of Georgia has planned to solve the problem of miners using free electricity with the help of local governments of Svaneti and Energo-pro Georgia.
Source: Bits
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