Israel is a well educated middle-eastern country with a population of only 8.4 Million and GDP of almost US$300 Billion, of which their technology sector accounts for 15.7%. Startups contribute an unusually large portion towards these numbers, and lately, this trend has manifested itself as an unusually rich and constant stream of bitcoin and blockchain companies.

So many well-funded local startups are focused on blockchain business that Deloitte recently created a report focused on the Israeli blockchain business scene. Deloitte's professional network provides financial advisory services to over 225,400 professionals around the globe, generating US$35.2b in revenue during 2015.

The report illustrates in clear detail that growth of bitcoin and blockchain startups in Israel has been pushing forward faster than anywhere else in the world, outside of silicon valley, at least.

"Israel has the highest concentration of technical companies outside of Silicon Valley and the highest number of NASDAQ-listed technology companies, after the U.S. and China. Also, Israel's technology industry accounts for 15.7% of the country's GDP."

- Deloitte

The paper says that between 150 and 230 businesses in Israel accept Bitcoin, with "almost 50" brick-and-mortar stores accepting it as payment in Tel Aviv. Coinmap currently shows a slightly smaller number, pointing to 64 self-listed merchants that accept bitcoin as payment. These businesses include kindergartens, tattoo parlors, lawyers, a car repair shop, and about 15 bars and restaurants, according to the report.

Two of the four Bitcoin ATM machines in the country are located in the downtown Bitcoin Embassy, a hub for the community and entrepreneurs. Informally referred to as "never ending meetup," the embassy hosts lectures, offers educational classes about Bitcoin, holds a weekly in-person trading session, and provides a meeting environment for collaborative work on blockchain-related projects.

The venue also hosts the popular Israeli Facebook Group, Israeli Bitcoin, which has more than 4,600 members, making it one of the most popular facebook bitcoin groups by locality.