Illegal mining causes severe energy shortages: Abkhazia’s energy crisis is severe, worsened by illegal Bitcoin mining since 2016. Authorities report that mining consumes 50% of local electricity, causing drastic shortages, with power available just 4 hours and 40 minutes each day.
Mining contributes to budget depletions: Authorities have conducted raids, seizing over 200 mining rigs. Funding issues prevent electricity purchases from Russia, leading to the depletion of regional budgets, exacerbating the critical shortage of electricity in Abkhazia.
Regulating Bitcoin mining proves challenging: Despite attempts to regulate mining since 2018, local enforcement struggles with the influx of miners. The energizing appeal of low energy prices complicates regulation efforts further, intensifying tensions among residents in Abkhazia.
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