Bitcoin mining consumes a huge amount of electricity. As a result, Bitcoin miners regularly cause power outages that outrage countries. The story has been repeated for the first time in China, Iran, Kazakhstan and most recently in Georgia. Miners have flooded into the town of Swaneti, attracted by cheap electricity.
After COVID-19 impacted the tourism-based economy of the town of Svaneti, many people have started mining cryptocurrencies to keep their money. However, the mining caused severe power outages and the city’s residents swore not to indulge in Bitcoin mining.
Areas affected by COVID-19 move to BTC mining
Bitcoin (BTC) is the reigning king of cryptocurrencies and more and more people are entering the Bitcoin mining arena. Bitcoin mining involves complex mathematical calculations that involve solving a complex proof-of-work algorithm on an advanced computer. This process requires a large amount of energy. Cheap electricity is one of the main attractions that draw miners to such locations.
The COVID-19 pandemic has forced many town residents to turn to mining as a source of income after the region’s tourism-dependent economy was crippled. However, residents of the Georgian town of Svaneti have taken a holy oath against engaging in cryptocurrency mining. The decision comes amid a power crisis affecting the region.
Low energy tax is a big attraction for Bitcoin miners
Protests hit the town after a blackout due to cryptocurrency mining. Sputnik Georgia also shared a clip showing people swearing St George against cryptocurrency mining.
Cryptocurrency mining has also angered environmentalists, who consider it one of the worst polluters. It is estimated that 13 million tons of carbon dioxide were emitted between January 1, 2016 and June 30, 2018. Most of the cheap electricity comes from coal-fired power plants.
In recent times, many countries have tightened regulations against cryptocurrency mining. Police in Kosovo, a semi-independent region in the former Yugoslavia, have confiscated 300 cryptocurrency mining machines to control “gray mining” activity from homes, garages and balconies. Kosovo also implemented a comprehensive ban on crypto mining on January 5. Iran has also imposed a complete ban on crypto mining within its borders. According to Cambridge researchers, Bitcoin mining consumes about 121.36TWh of energy per year.