Why did Georgian citizens make to swear an oath to stop mining crypto? In a bid to return the country’s energy consumption rate to normal Dogecoin (DOGE) Price Prediction, the government of Georgia resorted to having its citizens pledge oaths to stop mining cryptocurrencies.
The holy oath is described as the most sacred religious agreement in the country and is regarded as an unbreakable bond.
Georgian citizens made to swear an oath to stop mining crypto
Going through the Religious Path
It is unusual that Georgia decided to make its citizens take oaths rather than make efficient legislation like China and other countries did to prohibit the mining of cryptocurrencies within its cities.
On December 30, 2021, videos and images circulated showing the mining residents of Svaneti in a queue to swear their oaths to St. George, promising not to mine any crypto henceforth.
The government is banking on the notion that such commitments are “unbreakable.”
What you need to know about mining crypto
Cryptocurrency mining is an energy-intensive activity that could damage an energy grid. In the last two years, Bitcoin miners have moved in large numbers to countries with cheap or free electricity systems to profit from the activity.
This topic has become controversial, and several protests have been staged by non-mining residents calling for a stop to the practice.
The mountainous region of Svaneti, Georgia, unintentionally made mining more attractive to miners with its free and subsidized electricity for Mestia residents and businesses.
Due to a scarcity of jobs and resources, many residents began mining cryptos due to the region’s tourism slump.
Citizens of Georgia became primarily involved in the activity at the peak of the pandemic in 2020. Georgia is a small country whose economy relies mainly on its tourism sector.
The pandemic put tourism at a standstill, as it did in other countries, and the citizens were forced to find other means of livelihood.
Only recently has the tourism sector begun to regain its pre-COVID levels.
Last year, the total energy consumption rate in the country was over 200% higher than that of 2019.
This overconsumption strains the historic town’s power grid, significantly reducing its efficiency.
The high number of crypto miners in Svaneti, Georgia, is blamed for the continuous damage to the power grid.
This situation has become common in different countries worldwide, to the chagrin of residents.
Countries like Kosovo and Kazakhstan have banned all crypto mining activities to prevent more damage to the grid.
Putting an end to an unsustainable Trend
Mestia’s primary electricity supplier threatened to raise the town’s electricity bills due to the complaints of local residents and the continuous damage to the grid.
In the areas enjoying free electricity, they also threatened to introduce bills to discourage miners and make mining less appealing to interested residents.
The Mestia municipality’s energy supplier, Energy Pro, declared that the massive increase in energy consumption in the area was unsustainable.
They added that most of this increase could be linked to the impact of crypto mining.
The energy company explained to local pressmen that the area that used less than 6 megawatts of electricity now uses 27 megawatts, which is more than the infrastructure could handle.
Kosovo, located in Southern Europe, declared the crypto mining ban some weeks ago after a supply drain during the winter period.
Law enforcement fished out and seized over 300 mining rigs some days ago, resulting in many miners moving away to other countries to continue their mining operations.
In the same vein, Kazakhstan effectively decreased mining activities in the early days of this month. Amid political protests, an internet blackout ensued, leading to a 13% reduction in hash power in the Bitcoin network.
The central Asian country was formerly the second most active country for Bitcoin mining globally.
Georgia’s central government and its utility agencies are fully committed to dealing with these continuous power shortages in Svaneti.
At a press conference last week, Natia Turnava, Georgia’s Minister of Economy and Sustainable Development, announced that the government is working hand-in-hand with Energy Pro to put a stop to the illegal use of Svaneti’s electricity to mine cryptos.
Trnava commented that the oath is the first step to gradually resolving this issue.
The faster the situation is controlled, the earlier Svaneti residents can go back to enjoying their unlimited power supply regime.
The local government and energy providers will also be spared the recurrent cost of fixing damages to the power grid due to illegal crypto mining.