As illegal and legal crypto miners refused to slow down business in the state, the crypto mining crisis in Abkhazia is approaching a boiling point after the substation burned down.
Crypto mining crisis continues to worsen in Abkhazia
Sputnik Abkhazia (Sputnik Abkhazia) reported that an accident occurred during the weekend, especially on December 5, 2020, because the power distribution line and power battery were affected by the overheating of the Sukhum-1 substation.
This situation forced them to convene experts from all branches of energy provider Chernomorenergo to work throughout the weekend to control losses, which actually triggered massive power outages throughout South Caucasus.
Experts consulted by Sputnik pointed out that the incident is unlikely to be related to large-scale crypto mining farms, as it may be related to smaller rig operators, which operate 5 to 10 farms at home.
However, experts clarified that it still poses a threat to power safety because it is difficult to track compared to large farms that also run large rigs.
Not the first major event related to crypto mining in the state
This is not an isolated incident in the surge in crypto mining operations in Abkhazia. As early as November 24, 2020, angry villagers drove out the miners in their area. They were “tired” that the tire mining activities were out of control.
Due to disagreements on this issue, the crisis has left senior lawmakers in a difficult position. Radio Free Europe interviewed a 67-year-old resident of Sukhumi. He said that the post-war “difficult times” had a better life because the power outages continued and worsened than before. She added:
We must get used to the timetable they instruct us. This is very difficult because it is constant: the light is on and the water is gone; when the water is on, the light is off. Otherwise, the Internet will shut down. You can’t even turn on the washing machine to wash.
On October 3, 2020, a disputed territory with only 245,000 people between Russia and Georgia lifted the two-year ban on cryptocurrency mining activities.
According to data released by Radio Free Europe, the crypto mining farm in Abkhazia consumes about 40 million kilowatt hours of electricity every month. Nevertheless, some engineers even estimate that it has exceeded the 120 million kilowatt-hour threshold, accounting for a large part of the state’s actual demand.
Sputnik said that according to reports, politicians are still discussing the matter by seeking immediate solutions.
Will Abkhazia again ban cryptocurrency mining activities? Let us know in the comments section below.
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