Friday, June 24, 2022

The Nation of Georgia Quickly Emerging as a Crypto Leader

The Nation of Georgia Quickly Emerging as a Crypto Leader

The Eurasian nation of Georgia is swiftly emerging as one of the rising players in the crypto space. The fertile wine-producing land is proving to be even more fruitful for crypto mining activities. Several old storehouses have turned into data centers owing to cheap electricity rates in the country. 

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With a population of less than 4 million, the tiny nation of Georgia has become the second biggest cryptocurrency “printing press,” as it were, only behind China.

Mining cryptocurrencies is an electricity-intensive activity, and electricity in Georgia is heavily subsidized due to multiple hydropower plants in the country, making it one of the most favorable locations in the world to mine cryptocurrencies.

Crypto Mining a Booming Trend in Georgia

The hype in the country is such that many have obtained crypto mining rigs from China to mine cryptocurrency’s in Georgia as passive income. As cryptocurrency rises seemingly rise once more, miners in the nation already make a fair amount of money due to cheap electricity there

Accordingly, owning a mining rig in Georgia has become increasingly common as many have jumped on the crypto bandwagon in recent months.

A new liberal party in Georgia, Girchi, have also jumped into the space by mining cryptocurrencies from its official website. Willing supporters of the group permit the use of their computers’ resources to mine digital currencies for the party.

According to Girchi, they will introduce a state-backed cryptocurrency if elected into prominence. The party has undoubtedly chosen crypto as one way to attract younger voters.

BitFury Consumes Electricity Equivalent to 10% of Georgia’s Pop

Georgia is also home to one of the biggest cryptocurrency mining companies, BitFury. The U.S-based company is running mining operations on a large scale in the Eurasian nation.

However, the company has been criticized for receiving discounted rates for its electricity usage from the Georgian government. BitFury claims to consume electricity equivalent to 10 percent of the country’s population, so any discounts would presumably be sizable.

Last year, the company made huge profits and diversified its business to become a full-service blockchain technology company. It now also produces mining chips and provides consultancy services to businesses that want to set up data centers.

The Georgian government is also hyped about the revolutionary blockchain technology, having recently sought the help of BitFury to register citizen records on the blockchain.

Alternatively, the Central Bank of Georgia has warned citizens to tread cautiously while investing in cryptocurrencies. Many other domestic critics have shown disapproval of digital currencies, arguing they could severely affect the country’s economy if the crypto bubble bursts.

Conversely, if cryptocurrency does become the future of money, Georgia shall be well ahead of most countries.

Will Georgia become a crypto-reliant economy? Share your views in the comments section.  

Images via eduverve, Twitter

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