On this, while the bulk of profits are now in mining, Bachiashvili believed that the future would be on the consumer side, saying, “We believe in the exceptional utility it provides and that adoption rate of bitcoins is growing.” He added that based on this premise they are currently evaluating bitcoin wallet firms and exchanges, with a possible return to investing in the sector at the end of Q3 of this year. Bachiashvili also mentioned that although they are a private equity firm, they could partner with traditional VCs in the future to become more involved with emerging technologies.
Talking Bitcoins in Georgia
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Asking Bachiashvili about what the investment meant to the local Georgian bitcoin community and and also about the characteristics of users in the country. Bachiashvili explained that there was surprise and excitement, saying, “Georgia has a small community involved in bitcoins. They were excited and surprised that we did such a large deal.” He added that the deal has led to local media providing more coverage on bitcoins. In terms of the local market, Bachiashvili stated that the country has an established banking system, so there is a limited need for bitcoins as a store of value, unlike underbanked countries where he believed there is the potential “for bitcoins to leapfrog banks to become the financial system there.”
In Georgia though, Bachiashvili mentioned that where he sees the potential for bitcoins is based on the country having a massive adopter of online commerce; thereby leading to a natural fit with bitcoins in cases where the digital currency provided added benefits for buying online. Overall, Bachiashvili concluded our talk by stating that it is still too early to see the full potential of bitcoins in Georgia and the rest of the world and “expects more clarity as to where the industry will be in a year’s time.”