Georgia Promotes Bitcoin Mining

Some interesting facts about cryptocurrencies from the New York Times:

Nearly 10% of all of the electricity consumed in the former Soviet satellite country of Georgia is used to mine Bitcoins.

The government has encouraged Bitcoin mining to the extent of subsidizing electricity rates to the point that it costs only 5 – 6 US cents per kilowatt hour, compared to an average of $0.18 per KHw in the US (2015 per Statista.

Because the cost of mining Bitcoins is proportionate to their market value, this means that the major miner in Georgia, Bitfury, can continue to work while others have abandoned the process as unprofitable. It is estimated that Bitfury now mines 5% of all uncovered Bitcoins.

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
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