Bitfury, a cryptocurrency mining company has been operating in a region that is receptive of its processes for the past three years. This crypto friendly location is Georgia, which has exempted the company from paying taxes and provided low-cost electricity to ensure its mining operations are unaffected, reports New York Times on January 22.
Georgia Has Created a Friendly Environment for Companies to Thrive
Despite the falling rates in the Bitcoin’s price and that of other digital assets, NYTimes revealed that Georgia, a country with 3.7 million people had created an environment for cryptocurrency companies like Bitfury to thrive. From the company’s first launch in the area, they were exempted from paying taxes which means Bitfury gets to keep all its earnings.
Also, the energy price (5 to 6 cents per hour) the company pays for the hydropower it uses to mine Bitcoin, is half of what is charged in countries like the U.S. and Europe. The energy used for mining operations in Georgia accounts for nearly 10 percent of the entire energy consumed. Thus, the World Bank rated the country, as one of the world’s most active virtual currency sites, says NYTimes.
Reportedly, the acres of land which Bitfurry’s warehouse sits on was sold at $1 for every 45 acres, by the governing Georgian Dream party. It was also revealed that the mining company had received a $10 million loan from a former prime minister in 2015 when they were based in San Francisco.
Benefits Bitfury Has Impacted on the Nation
Pointing out the benefits Bitfurry has impacted on the area, NYTimes said most of Georgia’s land registries are now being stored on Blockchain, and it can be attributed to the efforts of the mining company. The media platform also noted that the region has plans to compete with other crypto friendly nations like Bermuda and Malta.
Remi Urumashvili, Bitfury’s main representative in Georgia, said:
Bitfury has given our country many things, including a path to the future..When you have a ticket to get onto the world map, you should use it.
Bitfury’s Mining Operations Encourages Individuals
Furthermore, reports reveal that while Bitfurry began its operations in Georgia when Bitcoin was only trading at $350 per coin, the immense profit their mining operations yielded encouraged several individuals in the country. As such, about 200,000 people acquired mining rigs.
Consequently, it impacts positively on the economy because more money is in circulation. However, these miners have pointed out that they would’ve been more profitable if they had easy access to a power supply as is the case of Bitfurry which has power station sitting next to its facility.
While these mining processes were more profitable in 2017, reports add that the fall in Bitcoin’s price has discouraged a lot of miners in the area. This has been attributed to the fact that the profit yielded is less compared to the electricity bills that will be paid to mine these assets.