The economy of Bhutan, a small kingdom in the Himalayas, is facing a number of challenges. Tourism, a major source of income for the country, has declined. In addition, more and more young Bhutanese are leaving to seek their fortune elsewhere. Despite these problems, Bhutan is also making a lot of progress.
A few years ago, Bhutan took a progressive decision. To solve the country’s problems, Bhutan has invested heavily in bitcoin (BTC) and, in particular, in mining it. Will bitcoin be the solution to save the economy?
How Bhutan started with bitcoin
Bhutan started mining bitcoin in April 2019, but did so under the radar for years. The exact size of the country’s mining operation is still unknown. Researchers at Forbes only discovered two years ago that the country was even involved in this. At the time, one researcher estimated its size at just under 1% of total global computing power.
Bhutan is a small country. It is smaller than Switzerland and has little income, but in 2019, the necessary computer chips did not cost much. Bhutan also has enough energy to keep the operation going, coming from hydroelectric power plants. In fact, the country produces more hydroelectricity than it can use.
Speaking to Al Jazeera last month, the Bhutanese prime minister said:
“It’s just a simple strategic choice that several people have made and that has earned billions of dollars, and I think more governments should do it.”
BTC can solve many problems
Bitcoin has the potential to help Bhutan move forward, and it has already done a lot of good for the country. For example, civil servants’ salaries doubled in 2023 with revenues from cryptocurrencies. Since then, the number of civil servants who have resigned has fallen by almost 75%, Al Jazeera reports.
The country can generate additional income from the bitcoin operation, and it is also a fairly sustainable choice for Bhutan, a country that cares deeply about sustainability and the environment. The country obtains clean energy from hydropower and, thanks to its cool climate, requires little energy to cool the computers.
Bhutan currently owns 13,029 BTC, according to data from BitBo. This puts Bhutan above El Salvador and below Ukraine in the list of largest sovereign bitcoin owners.
