Bhutan has accumulated a significant amount of Bitcoin due to its cryptocurrency mining strategy, leveraging its abundant hydroelectric resources. Here are some key points:

Main Reasons

  1. Abundant Hydroelectric Energy:

    • Bhutan has vast hydroelectric energy reserves, which represent 30% of its GDP. This renewable and cheap energy is ideal for powering Bitcoin mining operations, which require large amounts of electricity.

  2. Sustainable Mining:

    • Bitcoin mining in Bhutan is conducted sustainably, using hydroelectric energy, which minimizes the carbon footprint. This is particularly important in a global context where sustainability is increasingly valued.

  3. Strategic Investments:

    • The government of Bhutan, through its sovereign fund Druk Holding & Investments (DHI), has been mining Bitcoin since 2019, when the price of Bitcoin was around $5,000. This strategy has allowed the country to accumulate a significant reserve of Bitcoin.

  4. Economic Diversification:

    • Bitcoin mining offers Bhutan a way to diversify its economy and generate additional income. With a reserve of 12,218 BTC, valued at approximately $1.2 billion, Bhutan has positioned itself as one of the largest government holders of Bitcoin in the world.

Impact and Future

Bhutan has demonstrated that it is possible to combine sustainability with technological innovation to boost its economy. Its focus on Bitcoin mining using hydroelectric energy has not only allowed it to accumulate a significant reserve of cryptocurrencies but has also positioned the country as a leader in sustainable mining.

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