The practice of mining cryptocurrency has been increasing rapidly in the US although Georgia is still not considered as a likely business hub for such practice as the main associations with the state is made with the Coca-Cola company, a vast stretch of vegetable farms, orchards and Atlanta reality TV shows.
According to the recent report submitted by Bloomberg, the situation is changing significantly. CleanSpark Inc, a company related to energy production and bitcoin mining have received approval quite recently for getting green energy for a plot with fifteen thousand mining machines that were purchased in the suburb of College Park in Atlanta.
Crypto Mining –What You Need To Know
Unlike conventional mining operations, the crypto mining process does not require you to mine the resources from rocks or dirt, but use computer code for confirming the value of cryptocurrency and recording the transactions.
However, the mining process is still very energy-heavy as it requires heavy-duty hardware with a continuous supply of energy for running the blockchain.
As per Bloomberg’s report, Georgia had attempted to stop CleanSpark from cutting its ties with the earlier energy provider previously. But the state now allows some machines to utilize more energy-efficient and less costly power.
Executive Chairman of CleanSpark, Matt Schultz said that Georgia ultimately needs the business to remain in the state and therefore, has done all in its power for mining bitcoin in Georgia.
As for 2021, the biggest destination for crypto mining was China as at some point, it was making 76 percent of the mining practices. However, it took a significant toll on the environment and Beijing started to reduce mining practices before stopping it altogether by the year-end.
Where Miners Are Shifting And Where Not
After that, many mining operations moved to the U.S. and Georgia was very welcoming to this venture. A cryptocurrency company named Foundry noted that 34 percent of their mining was derived from Georgia by 31st January and as a matter of fact, Foundry stands as the biggest mining company in the country, if not the only one.
One of the main reasons behind the large number of mining practices being set up in Georgia is the cheap price of energy in this state. The companies are encouraging more businesses and thereby pushing the regulators in ignoring a momentum generated by the recent shift of Georgia towards more left inclining environmental policies –it has stopped mining Bitcoin in the other states.
For Foundry, the next largest destination was Kentucky at 12 percent. It permitted tax breaks recently for companies investing more than one million USD in equipment. Meanwhile, New York is currently experiencing rapid opposition from lawmakers who are inclined toward suspending crypto mining amidst more rigorous environmental reviews.
Darin Feinstein, the founder of Core Scientific said to Bloomberg that they will not move into the vicinities that do not need them at all and they will not be moving to New York and the regions where there is strictly no requirement for this industry.