Abkhazia Cuts Off Power Supply To 15 Crypto Miners January 2, 2019 January 2, 2019 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsJanuary 2, 2019 by Kelly Cromley

Abkhazia Cuts Off Power Supply To 15 Crypto Miners

In an attempt to conserve electricity supply and minimize the stress applied by crypto-miners on the country’s power supply system, the Abkhazia state-owned power company Chernomorenergo recently announced the withdrawal of power supply to 15 mining firms.

The temporary decision to cut power will assist in maintaining an adequate and stable power supply. Chernomorenergo announced the decision through a Facebook.

$4.7 billion–this is how much the BTC miners generated in the initial three quarters of 2018. But the cost involved could have eradicated poverty in a number of households. Abkhazia, a republic of 8660 km2 with a population of around 240,000, is confronting a power emergency and has denied the supply of power to 15 mining facilities.

The announcement was made by Chernomorenergo RUE, the state electrical utility. As indicated by them, about 8,950 kilo-watt hours (KWH) of electricity were utilized by mining farms, equaling the power consumed by almost 1,800 homes. Likewise, providers have pointed out that this sort of utilization topped the load above ideal conditions.

The miners have conformed to the temporary measure and extended their cooperation. The government has endorsed this and set priorities for rural households. Power suppliers would be ordered to cancel any surplus electricity utilized by mining activities of any kind. Furthermore, the Republic of Abkhazia intends to authorize crypto currency and mining related businesses, taking into account its local craze and the cost of the power supply. Appropriate legal framework to manage the innovation would be established.

The province of Washington’s Chelan County Public Utility District has launched a new electricity pricing system for cryptocurrency miners to limit excess power transmission and the associated rise in transmission costs. The scheme is structured to safeguard the prevailing customer base against any type of investment loss.

The revenue generated in the initial 6 months of 2018 was better than the performance of 2017. The profits made by the miners were on the lower side. In December, Chinese miners came out as the most significant short sellers of Bitcoin.

Earlier last year, a report made it known that three mining farms were straining the country’s power supply.

Regarding this, Chernomorenergo’s general director Aslan Basaria stated that:

“For the Abkhaz energy system, mining and crypto-currencies are a big problem… Two [are] on the territory of Sukhumi Physicotechnical Institute (SFTI) in Aguder and Sinope…In the SFTI…uncontrolled consumption of electricity is obtained. Yes, they pay for electricity, so what? But at the same time, there is a load on our networks, the load on our backbone lines, our substations and transformers. This is a load and a blow to an ordinary person, who in winter wants to get light and warmth.”

Unfortunately, no further details were disclosed regarding the actions taken by the authorities to manage the strain caused by these three mining farms.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.