Most people believe that bitcoin mining operations are dominating on countries like mainland China and Iceland. What they don’t know that a small nation from Eurasia called Georgia, is ranked to be the second most profitable place in the world for cryptocurrency mining next to China.
Georgia is known for its impressive wine around the world. But this region nowadays has become famous for its progressing cryptocurrency mining center where businesspeople are searching to gain profit.
As a democratic nation-state found between the boundaries of Eastern Europe and Western Asia, Georgia has been the central haven for bitcoin and cryptocurrency miner over the past few years because of the low-cost hydropower and at the same time, the lack of regulations compared to other countries. According to a current NPR report, Bitfury, a U.S. based firm has the most Georgian mining facilities, but there are other small operations as well. These Georgian mining facilities are located outside the Tbilisi region, but, the company’s central date site was recently sold according to a report.
Most of the home miners in this country have been establishing shops like Bezhani Buzhaidze, a Telavi resident, who gained his income from bitcoin mining and zcash. He explains on one of his interviews last year that he was sweeping in approximately $800 USD every thirty days by just mining zcash, and the electricity only costs $80 a month. He also claims that four of his friends are partaking in the Georgian industry. Furthermore, cryptocurrencies have also made Georgians the vision of the technology one day unleashing free markets worldwide without crony capitalism.
“We won’t need banks anymore,” Buzhaidze explained. “It will be good for society.”
Georgian Officials and Bitcoin Mining
The fact that Georgia has lighter regulations and restrictions, Georgian Central bank has announced statements to possible direct investors that cryptocurrencies may be “risky investments.” But, there are lots of Georgian locals who want the digital currency industry to succeed in the country, and just recently, one of the political parties has been using funds from mining cryptocurrencies. Bitfury’s yearly electricity has an estimation of 28 million kilowatt-hours consumed in thirty days that brought uneasiness to political bureaucrats.
Opposition parties also alleged that the former Prime Minister of Georgia, Bidzina Ivanishvili, is privately partnered with Bitfury operations. There was a public record showing funding tied to Ivanishvili’s investment divisions providing Bitfury for borrowing funds, but Bitfury attorney stated that the loan was paid in full, and he explains that “no financial ties remain.” However, local newspapers like Georgia Today detail that Bitfury’s George Kikvadze is still an active member of Ivanishvili’s investment agency.
Using Georgia’s energy division can be very productive as rates per wattage in the country can be roughly 4 to 6 U.S. cents/kWh according to Galt & Taggart study. There are 22 hydro plants under development in Georgia, and 72 established hydro plants in the country. Cryptocurrency miners worldwide is now seeing the country as a lucrative region to set up shop as Georgia is unwaveringly becoming a digital currency mining epicenter.