Georgia becomes the epicenter of the cryptocurrency mining industry in Eurasia

Generally, when people think about Bitcoin mining sites, they turn to countries like Iceland and mainland China. However, most people do not know that Georgia, a small country in Eurasia, is ranked second among the most profitable areas in the world for cryptocurrency mining. It is just below China in this ranking.

Cryptocurrency miners flock to Georgia

Georgia is well known for its wine, but the country is also beginning to make itself known as a profitable mining nation, where more and more entrepreneurs are looking to settle for maximum profit. Georgia is a democratic state at the crossroads of Eastern Europe and Western Asia. In recent years, bitcoin and cryptocurrency miners have flocked to the Georgian region because of the lack of regulation and the very low costs of its energy, particularly in the hydroelectric sector. According to a recent NPR report, the American Bitfury company once represented the majority of Georgian mining facilities, but there are also many other small farms and new ones are coming in every day. Bitfury's Georgian mining facilities existed beyond the Tbilisi region, but according to reports, the company's main data site was recently sold.

Many miners have also settled in Georgia, such as Bezhani Buzhaidze, a Telavi resident who subsidizes his income by exploiting bitcoin and zcash. Buzhaidze explains in his recent interview that last year he was collecting around $ 800 USD a month by mining the Zcash and that electricity costs were only $ 80 a month. Buzhaidze explains that four of his friends are also involved in the Georgian mining industry. Georgians dream of doing without banks and being able to be financially free, says Bezhani Buzhaidze.

Georgian Bureaucrats and Bitcoin Mining

Although regulations are lighter than other countries, the Georgian central bank told potential investors that cryptocurrencies may be "risky investments". However, many Georgians want the digital currency industry to thrive in the country. Recently, a political party has undermined cryptocurrencies to finance its campaigns. However, Bitfury's annual electricity estimates indicate that the company used 28 million kilowatt-hours of power per month in Georgia, making some political leaders uncomfortable.

Some opposition bureaucrats also claim that former Georgian Prime Minister Bidzina Ivanishvili is secretly associated with Bitfury operations. Public documents show a fund linked to one of Ivanishvili's investment arms would have allowed Bitfury to borrow funds, but according to Bitfury's lawyer, the loan was paid in full, and he explains that " there is no longer any financial link. "

Mining in Georgia can be very lucrative, as electricity prices in the region can be in the range of $ 4 to $ 6 / kWh, according to research by Galt & Taggart. There are 22 hydropower plants under construction in Georgia and 72 hydropower plants already established in the country. Cryptocurrency miners around the world are now seeing the country as a profitable region to settle.