Electricity supply and cryptocurrency mining go hand in hand, but the latter largely depends on the former. For Abkhazia, its currentwoes aren’t related to the typical problems of getting recognition as an independent country, but it’s all about power.
Over the years Soviet Factories left behind in the rocky regions Abkhazia have found new usage as crypto enthusiasts turn them into crypto mining farms. Furthermore, with Abkhazia having the lowest power charges at 40 kopeks which is 0.6 cents per kilowatt within an hour, crypto mining is the best economic activity for Abkhazia residents. But according to electricity officials, the latter is causing strains on the main power supply.
“At the moment we have these farms set up in several now defector or partially abandoned factory premises, and with the way these computers consume a lot of power we have an additional load on the main grid.” Aslan Basaria head of Chernomorenergo state-run Energy Company. “Besides the crypto mining farms adding more loads on Abkhazia power supply the same power stations were already overloaded. Furthermore, with winter looming in and the temperatures going to fall, regular customers won’t get electricity.”
Abkhazia and Georgia Have Both Embraced Mining
The uptake of crypto mining in both Abkhazia and Georgia is making the situation worse for both countries. While the conflict between the two coupled with civil war has come to an end, the two countries share one hydropower plant. Which means when winter hits and water levels fall at Jvari Reservoir intertwined with the rise in cryptocurrency mining in both countries there will be little or no power.
Due to the looming problems officials foresee, they have called for regulatory frameworks to be put in place to save the current situations. Through the regulations, the countries can avoid any power interruptions in the coming winter. However, while cryptocurrency mining is taking a toll on the power supply, it’s giving the country an opportunity to improve its economic status. Moreover, cryptocurrency mining is providing an opportunity to attract foreign trade and investment not only to Abkhazia but also Donetsk People’s Republic.
Furthermore, the success of cryptocurrency mining in Abkhazia has also led to BCSG Blockchain Company local startup led by Yevgeniy Galiakhmetov to pitch the idea of Abkhazia creating its coin Abkhazia Republic Coin. Galiakhmetov believes digital currency can help curve Abkhazia economy into a strong economy in future.