Fun

Georgia Goes After Crypto Miners Using Subsidized Electricity in Historic Town

News Feed - 2022-01-13 11:01:33

Georgia Goes After Crypto Miners Using Subsidized Electricity in Historic Town


A record high consumption of electricity blamed on illegal crypto farms in northwestern Georgia has caught the attention of authorities in the capital Tbilisi. The central government and the local utility are taking on the issue of dealing with power shortages in the mountainous region of Svaneti. With Tourism Hit by Pandemic, People in Georgia Turn to Crypto Mining on Cheap Energy


The government of Georgia, a small nation in the Caucasus, has joined forces with the energy distribution company Energo-pro, to address the growing illegal use of electricity to mine cryptocurrencies in the Svaneti region. The move was announced by the country’s Minister of Economy and Sustainable Development, Natia Turnava, at a press conference this week.


The extraordinarily high power consumption by mining farms in the area of the historic town of Mestia has been a hot topic for a whole month now, the Novosti-Georgia news agency reported. Svaneti has attracted miners with its low electricity rates introduced for businesses working in the mountainous region. The population of Mestia has access to free electrical energy.


Until the end of December, residents of Svaneti had to put up with a limited power supply regime. Underground crypto miners have been blamed for the shortages and damages to the power grid. Minister Turnava commented: Of course, illegal consumption of electricity is unacceptable, especially the problems with home mining which exists there. We are working with the local government, as well as with Energo-pro Georgia which supplies electricity to Svaneti, in order to gradually resolve this issue.


Residents of Mestia have held several demonstrations demanding the closure of the mining farms and accused local authorities of protecting the miners. Meanwhile, Energo-pro Georgia threatened to increase the electricity tariffs for the region. Despite this and the protests, consumption has not decreased yet.


“Compared to previous years, consumption has grown by 237% this year,” the municipality of Mestia revealed in a statement last month. The local authorities also urged residents involved in the minting of digital currencies to abandon the activity.


Natia Turnava expressed her hope that people in the region will not risk jeopardizing the tourist season. With beautiful landscapes, medieval towers and ancient traditions, Svaneti and Mestia have attracted thousands of visitors in the past decade. However, as the number of tourists declined amid the Covid-19 pandemic, locals have found an alternative income source in mining.


Georgia became a mining hotspot several years ago when the country ranked as the second most profitable location for bitcoin miners after China. According to a 2018 study by the Cambridge Center for Alternative Finance (CCAF), the nation also placed second in terms of electricity consumed for cryptocurrency mining. As of August 2021, its share of the global average monthly hashrate was 0.18%. Tags in this story Crypto, crypto farms, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, deficit, Electricity, Energy, Georgia, Georgian, historic, Mestia, Miners, mining, pandemic, power, regime, region, shortages, Supply, Svaneti, Tourism, tourists, Town


Do you think Georgian authorities will be able to solve the problems with electricity supply in the Svaneti region? Tell us in the comments section below. Lubomir Tassev


Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Bitcoin Mining Firm Luxor Launches ASIC Trading Desk MINING | 10 hours ago Bitfarms Buys the Dip: 1,000 Bitcoin Added to Treasury as BTC Falls While Mining Hardware Prices Remain High MINING | 3 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleGAIMIN Brings Blockchain and NFTs to Minecraft Next articleWikimedia Foundation Debates Acceptance of Cryptocurrency Donations Over Environmental Concerns Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com 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 in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItItalian Sports Car Maker Ferrari Inks Multi-Year Deal With Blockchain Firm Velas Network AG


The Italian luxury sports car manufacturer headquartered in Maranello, Italy, Ferrari has announced the firm is partnering with Velas Network AG, a firm that specializes in blockchain and non-fungible token (NFT) technology. Ferrari Reveals Partnership With Blockchain Firm Velas On ... read more.Crypto Scammer Arrested in Bangkok After Fleeing With 500 Million Baht Ethereum Hashrate Taps Record-Setting 1 Petahash as ETH’s Mining Profitability Remains High Pensioners of the National Oil Company Will Receive 2 Petros as a Gift in Venezuela Study Shows Market Share of Altcoins Surged Threefold Since 2014

News Feed

Chinese Authorities Prosecute Alleged Masterminds Behind MDC Pyramid Scheme
Chinese Authorities Prosecute Alleged Masterminds Behind MDC Pyramid Scheme Chinese authorities in Rong County recently said they have prosecuted eight individuals accused of being
TD Securities Analyst Says Gold Sell-off May Not Be Over — Carry and Opportunity Cost Could ‘Drive Capital Away’
TD Securities Analyst Says Gold Sell-off May Not Be Over — Carry and Opportunity Cost Could "Drive Capital Away" Precious metals markets continue to flounder this week as gold&#x
Norway Releases Source Code for Digital Krone Sandbox, Utilizes Ethereum Technology
Norway Releases Source Code for Digital Krone Sandbox, Utilizes Ethereum Technology A crypto company working with the central bank of Norway has published the source code for the s
David Attlee4 hours agoFrom Thailand to South Africa, regulators tighten their grip on crypto: Law Decoded, July 3–10South Africa’s financial regulator has announced that all crypto exchanges in the country must obta
Bitcoin Hits ATH Of $112,000, Expert Predicts Rally Is Just Beginning
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Noble Partners With Circle Financial to Integrate USDC on Cosmos Blockchain
Noble Partners With Circle Financial to Integrate USDC on Cosmos Blockchain According to the token protocol startup Noble, the second-largest stablecoin, USDC, will be integrated i
Leading Australian Regulated Micro-Investing App Adds Bitcoin Option for Investors
Leading Australian Regulated Micro-Investing App Adds Bitcoin Option for InvestorsPopular demand for cryptocurrency has prompted Australia’s leading micro-investing platform R
Kenyan Fintech Player: ‘Banking the Unbanked’ Is the Most Important Use Case for Digital Currencies in Africa
Kenyan Fintech Player: "Banking the Unbanked" Is the Most Important Use Case for Digital Currencies in Africa The year 2020 may well go down as the year when blockchain technology
Helen Partz14 hours agoOpenSea NFT users report massive email phishing campaignOpenSea users have reportedly been targeted with a widespread email phishing campaign, including a fake developer API risk alert and a fake N
US, UK Regulators Partner on Broader Crypto Regulation
US, UK Regulators Partner on Broader Crypto Regulation Regulators in the U.S. and U.K. have met to discuss broader crypto regulatory initiatives. They reaffirmed their commitment t
Newly Appointed Ukrainian Politician Declares Owning Over $24 Million in Monero
Newly Appointed Ukrainian Politician Declares Owning Over $24 Million in Monero A 19-year old Ukrainian politician disclosed all the property he owns during an a
SEC Charges Token Listing Website With Unlawfully Touting Crypto Securities
SEC Charges Token Listing Website With Unlawfully Touting Crypto Securities The U.S. Securities and Exchange Commission (SEC) has charged a token listing website