Opposition politician and former president of the National Bank, Roman Gotsiridze, stated that crypto farms in Georgia create a dangerous load on the country's energy sector, contribute almost nothing to the budget, and rely on tax and tariff privileges.
Gotsiridze Accused Cryptomining of Putting Pressure on the Energy Sector
According to Roman Gotsiridze, cryptocurrency and mining themselves should not be a prohibited sphere if businesses operate under general conditions, compete with other industries, and bring real income to the country. However, as the politician claims, the situation in Georgia is arranged differently: crypto-mining companies are exempt from taxes and receive electricity on preferential terms.
According to Gotsiridze's estimate, crypto farms contribute almost nothing to the budget but constantly pressure the energy system; without tax and energy privileges, such companies would quickly cease operations.
Gotsiridze calls such enterprises consumers that take resources away from the energy system and the state budget. In his logic, the benefit of a regular economy is visible through several signs:
- Investments.
- Taxes.
- Bank transactions.
- Movement of US dollars or other currencies.
In the case of crypto farms, the politician asserts, the state receives disproportionately little compared to the amount of electricity spent on extracting digital assets, including Bitcoin.
Approximately 6% of Electricity and Constant Load
Roman Gotsiridze separately emphasizes the operating mode of crypto farms. Such facilities, according to him, do not stop either in winter or summer and keep the energy system under stable load around the clock. The politician links this to the increasing number of accidents in the energy infrastructure.
Gotsiridze's estimates on the load look like this:
- Indicator: share of electricity produced in Georgia. Value: approximately 6%. Comment: when taking into account Abkhazia's consumption, the indicator, as Gotsiridze claims, becomes higher.
- Indicator: annual consumption of crypto farms. Value: about 1 billion kilowatt-hours. Comment: the politician compares this volume with the annual consumption of Batumi and considers such a load too serious given the minimal return for the budget.
Political Context and the Demand for a Ban
Gotsiridze also claims that crypto farms are backed by representatives of the business clan of the ruling party "Georgian Dream." He links the largest crypto farm in the Gldani district to Bidzina Ivanishvili, asserting that he was the one behind its establishment.
The mining market overall is known for large technological players, including Bitfury, but the focus of Gotsiridze's statement is not a specific brand, but the very model of operation of such facilities in Georgia:
- Preferential electricity.
- Tax concessions.
- Constant load on the grid.
The dispute around mining has long gone beyond the narrow topic of cryptocurrencies: similar discussions about the cost of energy for the industry are taking place in both Europe and the United States of America. For Georgia, according to Gotsiridze's position, the main question sounds simpler: should the country support a business that consumes enormous amounts of electricity but hardly fills the budget.
Cryptocurrency mining in free industrial zones must be banned immediately, declared Roman Gotsiridze.
Thus, the politician proposes not a point adjustment of conditions, but a tough solution: remove crypto-mining from free industrial zones and deprive the industry of a regime that he considers unjustifiably privileged.
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