Bhutan invested millions into Bitcoin. That’s surprising if you are still wondering if bitcoin is here for the long haul. If you are on the opposite side with complete conviction that bitcoin is here to stay and expect the price to go up gradually, then you would want to purchase the asset, get involved in the industry, and form a company or companies around the asset.
It is always surprising to hear about countries becoming much more interested in bitcoin, as the digital asset is still fairly new and subject to significant volatility. While many people might not be aware of the number of countries holding bitcoin, it seems that there are more that are getting involved with the leading digital asset in some form or fashion.
Bhutan invested millions into Bitcoin. But first, where is Bhutan? Bhutan is a country in East Asia with a GDP of 2.54 billion. It is known for its hydropower sector, for its significant capabilities of carbon capture through its density of trees (forestry), agriculture, and for its tourism as well. Unfortunately, the country is among many that took a substantial economic hit during the pandemic, with the number of tourists decreasing significantly.
Let’s find out more about Bhutan and its foray into bitcoin.
Bhutan and Energy
First, it is important to understand a little bit more about Bhutan and its ties to energy.
It continues to see generally steady business with its hydropower sector. It has strong economic ties to India and one key point of cooperation is in its hydropower sector. This is important to note when it comes to bitcoin. Energy utilization and bitcoin are interlinked and can be another aspect of modernization for emerging countries. Bhutan exports over 70% of its hydropower surplus power to India. Its energy export accounts for over 20% of its revenue.
Further, if the belief is that bitcoin is here to stay and that it will continue to trend up in price, then it is in the best interest of a developing country with energy to purchase bitcoin or to mine it when it as a low point.
Bhutan already headed in that direction. It was noted to have started the mining process when the price of bitcoin was lower than $6,000. The country or the investment arm of the country also had interest in ethereum.
The investment arm realized the potential of getting involved in the mining process of bitcoin and taking advantage of its unique strengths. Let’s find out more about its initial foray into bitcoin.
Bhutan’s Investment Arm Makes Investments in Bitcoin
Bhutan, the small Himalayan kingdom known for its Gross National Happiness index, made a surprising move by investing millions of dollars in Bitcoin. The country’s investment management arm has reportedly been accumulating Bitcoins since 2018, although the exact amount invested is not yet clear. This revelation came as a shock to many people who view Bhutan as an isolated and conservative nation.
This news came to light through court filings of the high profile bankruptcies of Celsius and BlockFi.
Bhutan’s decision to invest in Bitcoin shows that even countries with limited financial resources are recognizing the potential of cryptocurrencies. While some may criticize this move as risky or irresponsible, it could prove to be a wise investment in the long run. As more companies and institutions adopt digital currencies, it is likely that their value will continue to rise.
At the same time, there are also concerns about the impact of cryptocurrency on traditional banking systems and financial regulations. As governments around the world struggle to keep pace with these new technologies, it remains to be seen how they will be regulated and integrated into existing financial systems.
Overall, Bhutan’s investment in Bitcoin highlights the growing importance of digital currencies and the need for more education around them. It is important for both individuals and nations alike to carefully consider the risks and benefits of such investments before diving in headfirst.