A report published by Arcane Research recently revealed that, in regards to Bitcoin mining, the Republic of Georgia, situated in the crossroads of Europe and Asia, contributes to nearly 1% of the industry’s total hashrate, with the country housing an abundance of hydropower and ranked seventh in the world for the World Bank’s Ease-of-Doing-Business Index. Based on a report on Cointelegraph.com, the entire country of Georgia, which hosts Bitfury’s industrial mining operations as well as smaller, solo miners tapping into enormous amounts of hydroelectric power, makes up 0.18% of the Bitcoin network’s total hashrate, according to the Cambridge Bitcoin Electricity Consumption Index, while a detailed and long-term report by Arcane Research suggests the number is closer to 0.71%, as explained by the analyst at Arcane Research who authored the report, Jaran Mellerud, “Home mining is big in Georgia, especially in regions with subsidized electricity. As long as there are electricity subsidies in certain regions of the country, people will continue setting up small home mining operations.
As highlighted by the news outlet, the report identifies 125 megawatts (MW) of crypto mining capacity, at minimum, 62 MW of which derives from industrial-scale data centers, with Mellerud adding, “The remaining 63 MW should then comes form lots of small amateur setups scattered around the country in homes, garages, abandoned warehouses and factories,” thus concluding that the real number for Georgia’s total hashrate is closer to 0.71% because “100 MW of Georgia’s 125 MW total crypto mining capacity is dedicated to BItcoin and that Georgia’s hardware is as efficient as the network average,” which would make Georgia’s hashrate multiples higher than CBECI’s 0.81% estimate. That being said, Cointelegraph mentions that while the trend of Bitcoin miners locating to places with untapped energy resources, inexpensive energy or cost-efficiency is not new, it is a double-edged sword, citing Kazakhstan as an example, which recently hosted as much as 18% of the global Bitcoin hashrate due to cheap power and loose rules, albeit regulators have already stepped in to propose power price hikes along with taxes.
Mellerud went on tell the news outlet how he is aware that, despite Georgia’s “business friendliness,” “rising electricity prices” could deter miners from setting up operations in the country, noting, “I don’t believe the Georgian government wants more mining operations in the country, as miners are already using almost 10% of the country’s electricity, contributing to the country’s growing electricity deficit,” adding that “for industrial-scale mining, I believe there is no room for more capacity.” Nonetheless, Cointelegraph highlights that instead of industrial-scale miners, home mining-miners with units under 1 MW may continue to flourish, and, despite calls that residents of Svaneti in Georgia must swear a holy oath to Saint George to stop crypto mining, the country, as a whole, has a “positive attitude towards the emerging asset class,” according to Mellerud. That being said, small-time crypto enthusiasts, the news outlet concluded, can continue to use Bitcoin mining waste heat to warm their homes in the mountains using Georgia’s abundance of “cheap and clean hydroelectric power,” in the words of Mellerud.
- PublishedReportByArcaneResearchRevealsThatWhenItComesToBitcoinMiningTheRepublicOfGeorgiaSituatedInTheCrossroadsOfEuropeAndAsiaContributesToAlmost1%ofTheIndustry’sTotalHashrateWithTheCountryHomeToAnAbundanceOfHydropowerAndRankedSeventhInTheWorldForTheWorldBank’sEaseOfDoingBusinessIndex
- GeorgiaWhichHostsBitfury’sIndustrialMiningOperationsAsWellAsSmallerSoloMinersTappingIntoEnormousAmountsOfHydroelectricPowerReportedlyHasAtleast125Megawatts(MW)ofCryptoMiningCapacity62MWofWhichDerivesFromIndustrialScaleDataCentersWhichMeansThe63MWleftShouldThenComeFromSmallSetupsInTheCountry
- DespiteGeorgia’sBusinessFriendlinessTheReportMentionsThatRisingElectricityPricesCouldDeterMinersFromSettingUpShopInTheCountryWithTheGovernmentPresumablyNotWantingAnyMoreMiningOperationsInTheCountryGivenMinersAreAlreadyUsingAlmost10%ofTheCountry’sElectricityWhichIsContributingToGeorgia’sGrowingElectricityDeficit
https://cointelegraph.com/news/georgia-punches-well-above-its-weight-for-bitcoin-mining-report