georgia limiting mining

Georgia Might Start Limiting Industrial-Scale Mining To Avoid Power Deficit

22.02.2022 20:54 (Updated 15.11.2022 09:11)
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by Nina Petrov
2 min read

Georgia has been one of the Bitcoin mining paradises because the country is rich in hydropower, it has quick and efficient business procedures, and is conveniently located on the crossroad between Europe and Asia. 

Around half of the total mining capacity in Georgia is at an industrial level but the country is also home to a significant number of smaller farms and individual miners. 

Bitfury is one of the most famous industrial mining operations located in this Caucasian country.  At the same time, individual and improvised Bitcoin mining is scattered in homes, garages, and abandoned warehouses across the country, particularly in areas with electricity subsidies. 

According to a recent Arcane Research report, Georgia’s total hash rate is 0.71% and not 0.18% as was previously believed.

However, crypto mining in Georgia seems to have reached its peak, as the price of electricity starts to rise. Currently, mining consumes almost 10% of the national electricity supply, and the country might face a power deficit in the near future.

Therefore, analysts at Arcane Research believe that the Georgian government will probably start limiting the growth of industrial-scale mining, giving an advantage to individual mining operations, which can recycle residual heat produced by mining to warm their homes.

Author

  • Nina Petrov is a theoretical mathematician, passionate about new trends in the global economy and blockchain technology. She is a devoted content creator and editor, crypto-enthusiast and stock market analyst.

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