ANALYSIS OF THE ELECTRICITY CONSUMPTION AND CRYPTOCURRENCY PRICE DYNAMICS (GEORGIAN CASE)

Abstract

Recent fluctuations in the cryptocurrency prices raised a question about profitability of the mining process. As a result, a lot of companies around the world stopped producing cryptocurrency. Same happened in Georgia, however the share of electricity consumed in the mining process (counting only direct consumers) in the total electricity supply of the country exceeded 5 percent in 2019. The same indicator for the whole world is small enough and approximately equals to 0.3 percent of the total world electricity consumption. It is relatively new and remarkably important for the countries around the world to work on various approaches of regulating mining and usage process of cryptocurrencies. The regulatory methods significantly differ country by country. Existing regulations mainly cover status of the cryptocurrency and taxation approaches. Given foreign experience, it is desirable to consider the main models of tax regulation of cryptocurrencies and to adjust them to the reality of Georgia.