Georgia is a country wedged between Eastern Europe and Western Asia, it has historically been well known for its wine. However recently, it has gained popularity among cryptocurrency miners. It has turned into a cryptocurrency mining hub and many entrepreneurs are looking to it to profit.
The country lacks regulation regarding cryptocurrency which is the reason for its popularity among the cryptocurrency crowd. An additional aspect is the availability of inexpensive hydro power, which is essential for mining cryptocurrencies. While a US-based firm named Bitfury accounts for most of the mining facilities in Georgia, there are a large number of smaller firms in operation as well.
It is not only organizations but also individuals, who have been attracted by the opportunity in Georgia. Take Bezhani Buzhaidze for example, he is a Telavi resident who also subsidizes his income by mining bitcoin and zcash. He explains that in Georgia he was able to make $800 every thirty days by mining zcash, and his electricity at $80 is a fraction of that. He adds that four of his friends have also started minting cryptocurrencies in Georgia.Additionally, cryptocurrencies have also brought free markets and technology to the quaint country without the evil of crony capitalism. Buzhaidze believes that it will lead to lives which do not require banks and their corruption.
While, Georgia has lighter regulations regarding cryptocurrencies than most countries, the central bank has issued statements to potential retail investors that cryptocurrencies may be “risky investments.”Despite the hostile attitude from the government, the citizens seem to be happy about the found business opportunity and wish for it to thrive. A political party has been mining cryptocurrencies to fund its campaigns. However, Bitfury’s annual electricity estimates state that the firm utilized 28 million kilowatt-hours of power every thirty days in Georgia which has made some political leaders uneasy.