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Sebastian Staske

Cryptomining and the electricity sector in Georgia

Cryptomining in Georgia is dominated by professional companies, which are attracted by low electricity prices. Electricity consumption in this industry is volatile and highly affected by global trends: in summer 2019, cryptomining accounted for up to 14.1% of total electricity consumption.

  • Georgia
NL 43 | November-December 2021
Financial Markets

This declined to a low of 0.4% in autumn 2020. Currently, the sector consumes around 6% of total consumption. Cryptomining contributed to rising electricity imports, mainly generated from fossil fuels.
Profits from January to September 2021 are estimated at USD 44 m, equal to 0.3% of GDP. They are mostly tax-exempt. Few workers are employed in the sector.
Overall, it can be said for cryptomining that the economic costs in the form of volatile electricity demand are significantly higher than the economic benefits.

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