Arcane Research: Home mining is thriving in subsidized areas of Georgia – Bits Media

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.

Author of the report, dedicated to the level of development of cryptocurrency mining in Georgia, Jaran Mellerud (Horse Mellerud) reported, that many citizens of the country, in conditions of economic instability, are engaged in cryptocurrency mining, to improve financial situation.

“Home mining is popular in Georgia, especially in regions with subsidized electricity. While in some regions of the country there are subsidies for electricity, people will continue to create small home mining farms".

The report says, that in Georgia no less than 125 MW of power. Wherein 62 MW is used by mining companies to extract digital assets on an industrial scale:

"Rest 63 MW uses many small private mining farms, scattered throughout the country".

The author of the report writes, that Georgians place mining equipment in residential buildings, garages, in abandoned warehouses and manufacturing plants. The real Bitcoin hashrate in Georgia is in the area 0.71%, Mellerud says.

«From 100 MW to 125 MW of total cryptocurrency mining capacity in Georgia is used to mine bitcoins".

The hashrate in Georgia corresponds to the average value of the global Bitcoin hashrate, the analyst assures. This is several times higher than the estimated hashrate 0.18%, stated by the Cambridge Bitcoin Electricity Consumption Index (CBECI) for Georgia.

The analyst noted, that despite Georgia’s loyal attitude to mining, rising electricity prices may scare away those wishing to mine cryptocurrency.

"I don't believe, what the Georgian government wants, so that more cryptocurrencies are mined in the country, since miners are already using almost 10% electricity of the country, which contributes to the growing shortage of electricity".

The analyst emphasized, that Georgia does not have reserve capacity for mining 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 fight miners who abuse free electricity. The Ministry of Economy of Georgia planned, with the help of local self-government bodies of Svaneti and the Energo-pro Georgia company, to solve the problem of miners, enjoying free electricity.