When people are talking about Bitcoin, the country of Georgia does not immediately come to mind. Which is rather strange, as Georgia is working hard to become a favourable location for Bitcoin companies, as well as other international technology players. BitFury Group recently installed a brand new data center in the country, which has been attracting quite a bit of interest from all over the world.
BitFury Group Sees Bright Future For Georgia
Bitcoin mining is at a stage in life where only the major players can expect to make a profit from this technique. Mining Bitcoins at home is all but impossible, due to mounting electricity costs, the high upfront investment, and the overall low Bitcoin price. This dangerous cocktail of volatile factors is forcing individual miners to look at other ways to grow their portfolio.
Large companies, such as Bitcoin mining hardware manufacturers, have been controlling most of the world’s hashpower for a while now. To keep that lead position, they have to keep innovating, as well as pounce on any opportunity that may present itself. In some cases, this means investing a chunk of money in a new data center, to be built in a country most people wouldn’t associate with Bitcoin to begin with.
For BitFury Group, this is the second data center being built in Georgia’s capital of Tbilisi, even though this project is the first Technology Park. To put this project into investment figures, BitFury Group is sinking US$100m into this project, which will help the company’s infrastructure provision and transaction processing services.
Since the development of their own immersion cooling technology, BitFury Group has been able to run energy-efficient data center cooling operations designed for high-performance computer applications. Georgia is one of the few remaining countries where electricity is relatively cheap compared to other locations, which makes it a preferred place for BitFury Group operations.
The other data center operated by the company in Georgia is located in Gori, houses 6,000 different servers to process Bitcoin transactions every day. According to BitFury Group representatives, this data center is a major success in company history, which is part of the reason a second facility in the country is being constructed.
Data centers are not the only venture in Georgia with BitFury Group involvement. Bitcoins in Georgia, another project run by this company, is an innovative payment network using the virtual money. As you would come to expect, the entire ecosystem is operated with Bitcoin as the currency, simply because it is digital and a form of online payment.
Georgia Has Lots of Potential for Bitcoin
Due to the country’s attractive investment climate, it may very well only be a matter of time until other major [Bitcoin] companies make their way to Georgia. Combine this with the low electricity costs, and more importantly, competitive labor rates, and you can see why this relatively unknown country is on the radar of a lot of people in the tech industry.
One of the things Georgia needs is more convenient ways to buy and sell Bitcoin in the country. Right now, there is no Bitcoin ATM present in all of Georgia, and the number of Bitcoin exchanges is fairly limited. That being said, the future remains bright for Bitcoin in the country, and it will be exciting to see what happens next.
Images courtesy of Shutterstock, BitFury Group