{"id":408197,"date":"2022-02-21T13:11:42","date_gmt":"2022-02-21T10:11:42","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/georgia-punches-well-above-its-weight-for-bitcoin-mining-report\/"},"modified":"2022-02-21T13:11:42","modified_gmt":"2022-02-21T10:11:42","slug":"georgia-punches-well-above-its-weight-for-bitcoin-mining-report","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/georgia-punches-well-above-its-weight-for-bitcoin-mining-report\/","title":{"rendered":"# Georgia punches well above its weight for Bitcoin mining: Report"},"content":{"rendered":"

“# Georgia punches well above its weight for Bitcoin mining: Report <\/strong>”<\/p>\n

At first glance, the pint-sized Republic of Georgia is an unlikely suspect for Bitcoin (BTC) mining activity. An underdog for mining, the country boasts abundant hydropower while ranked seventh worldwide for the World Bank\u2019s ease-of-doing-business index<\/a>\u00a0\u2014 ahead of the United Kingdom and Germany.<\/p>\n

Nestled on the Black Sea at the intersection of Europe and Asia, Georgia hosts\u00a0Bitfury\u2019s industrial mining operations as well as smaller, solo miners that tap into enormous amounts of hydroelectric power. <\/p>\n

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Dutch miner Bitfury’s Bitcoin mining operation at the foot of the Tblisi National Park. Source: NPR<\/em><\/figcaption><\/figure>\n

The country packs a punch for Bitcoin mining. While the Cambridge Bitcoin Electricity Consumption Index\u00a0puts<\/a>\u00a0Georgia\u2019s hash rate at 0.18%, a detailed and long-term report<\/a> by Arcane Research suggests the number is closer to 0.71%. <\/p>\n

Jaran Mellerud, an analyst at Arcane Research and author of the report, told Cointelegraph:<\/p>\n

\u201cHome 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.\u201d<\/p><\/blockquote>\n

The report identifies at least 125 megawatts of crypto mining capacity, 62 MW of which derives from industrial-scale data centers. \u201cThe remaining 63 MW should then come from lots of small amateur setups scattered around the country in homes, garages, abandoned warehouses and factories.\u201d<\/p>\n

Mellerud concludes that the real number for Georgia\u2019s total hash rate is in the region of 0.71% because \u201c100 MW of Georgia\u2019s 125 MW total crypto mining capacity is dedicated to Bitcoin and that Georgia\u2019s hardware is as efficient as the network average.\u201d It is multiples higher than CBECI\u2019s 0.18% estimate, he added.<\/p>\n

However, while the trend of Bitcoin miners moving to untapp<\/a>ed energy resources, cheap energy, or merely cost-efficient places to do business is not new, it is a double-edged sword. <\/p>\n

In nearby Kazakhstan, which recently hosted as much as 18% of the global hash rate due to cheap power and loose rules, regulators are already considering stepping in, proposing power price hikes and taxes.<\/p>\n

Mellerud is aware that despite Georgia\u2019s \u201cbusiness friendliness,\u201d \u201crising electricity prices\u201d could deter miners from setting up operations. He told Cointelegraph:<\/p>\n

\u201cI don\u2019t believe the Georgian government wants more mining operations in the country, as miners are already using almost 10% of the country\u2019s electricity, contributing to the country\u2019s growing electricity deficit.\u201d<\/p><\/blockquote>\n

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Bitcoin and the flag of Georgia. Source: Georgiawealth.info<\/em><\/figcaption><\/figure>\n

Nonetheless, in a boon for BTC miners in Georgia, lawmakers\u00a0might grant crypto miners tax exemptions in a new bill, while Mellerud assured that \u201cfor industrial-scale mining, I believe there is no room for more capacity.\u201d<\/p>\n

Instead, home mining\u2013miners with units under 1 MW may continue to flourish. Despite calls that residents of Svaneti in Georgia must swear a holy oath to Saint George to stop crypto mining, the country, on the whole, has a \u201cpositive attitude towards the emerging asset class.\u201d <\/p>\n

Small-time crypto enthusiasts can continue to use Bitcoin mining waste heat to warm their homes in the mountains, using Georgia\u2019s abundance of \u201ccheap and clean hydroelectric power.\u201d<\/p>\n