In line with a recent official announcement ‘published‘ by state electric utility Chernomorenergo RUE, the Republican Govt. of Abkhazia has cut power to some cryptocurrency mining farms because of electricity issues.
As per the announcement, Chernomorenergo cut power to fifteen facilities with a complete capability of around 8,950 kwh, that is supposedly equivalent to the electricity consumption of 1,800 households. The cuts were made as a part of a series of “temporary measures to limit the consumption of electricity by certain sections of subscribers.” Chernomorenergo conjointly notes that, following the cuts, owners of the mining farms showed understanding and collaboration.
Regulators worldwide have expressed issues over the cryptocurrency mining industry’s electricity consumption. In Nov., Norway ended its electricity subsidies for Bitcoin [BTC] mining facilities. Parliamentary Representative for the Socialist Left Party [SV] Lars Haltbrekken declared that “Norway cannot continue to offer huge tax incentives for the foremost dirty kind of crypto-currency output […] [Bitcoin] needs heaps of energy and generates massive gas emissions globally.”
Within the U.S., the Chelan County Utility District of the state of Washington planned a new electricity pricing rating structure for cryptocurrency miners meant to pass down the value of increased electricity demand.
As reported earlier in Oct., Bitcoin [BTC] mining revenues for the primary six months of 2018 had surpassed results in 2017, however miners themselves saw very little profit, in keeping with weekly crypto outlet ‘Diar’. By that period of time, the rewards and charges for Bitcoin [BTC] miners had already reached $4.7 Bln within the first three quarters of 2018, around $1.4 Bln over the profits altogether of 2017. Miners reportedly still gained 54,000 Bitcoin monthly.
In Dec., Chinese miners reportedly became the largest short sellers of Bitcoin [BTC] both domestically and internationally, following an increased number of hedging operations within the current bearish industry. The severe cryptocurrency market decline reportedly caused a new generation miners to start out hedging their coins to ‘avoid market risks‘.