Just-In: Georgia Binds Its Residents in Holy Oath Against Bitcoin Mining

Parasshuram Shalgar
January 19, 2022
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Bitcoin mining consumes enormous amounts of electricity. As a result, Bitcoin miners have often caused power outages earning the wrath of the nations. The story has been oft-repeated first in China, Iran, Kazakhstan, and the latest in Georgia. Miners had swamped the Swaneti town, lured by cheap electricity.

After COVID-19 impacted the tourism-driven economy of Svaneti town, many people began crypto mining to keep funds coming in. However, the mining had caused severe power outages, and residents of the city have vowed not to indulge in Bitcoin mining.

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COVID-19 impacted regions turn to BTC mining

Bitcoin (BTC) is the reigning king of cryptocurrencies, and more and more people are getting into the business of Bitcoin mining. Bitcoin mining involves complex mathematical calculations involving solving a complex proof of work algorithms on advanced computers. The process requires a massive amount of power. Cheap power is one of the main attractions which draw miners to such locations.

The COVID-19 pandemic has forced many town residents to switch to mining as a source of income after the region’s economy dependent on tourism was crippled. However, Georgia’s Svaneti town residents have taken a holy oath against indulging in crypto mining. The decision comes in the backdrop of a power crisis impacting the region.

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Low power tariffs are a big draw for Bitcoin miners

Protests hit the town after power outages precipitated by cryptocurrency mining. Sputnik Georgia’s news outlet also shared a clip showing people pledging a holy oath to St. George against mining cryptocurrencies.

Cryptocurrency mining has also angered the environmentalists who see it as one of the worst polluters. As per estimates, 13 million metric tons of carbon dioxide were released between January 1, 2016, and June 30, 2018. Most of the cheap electricity comes from coal-fired power plants.

In recent times many nations have tightened regulations against cryptocurrency mining. Police in Kosovo, a semi-independent region in the former Yugoslavia, have confiscated300 crypto mining machines to control “grey mining” from people’s houses, garages, and balconies. Kosovo has also enforced a blanket ban on crypto mining on January 5. Iran has also imposed a complete ban on crypto mining within its borders. As per Cambridge researchers, Bitcoin mining consumes around 121.36TWh of energy a year.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Parasshuram has been online in various capacities as a pro-blogger, top researcher, and now a senior editor at CoinGape.com. He has over 14 years of experience in the field of online publishing. Mr Shalgar can be reached at [email protected].
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.