Was Bhutan calm? Mining Bitcoin since 2017? (Report)

Was Bhutan calm? Mining Bitcoin since 2017? (Report)

The Kingdom of Bhutan-an inland state in the eastern Himalayas-has reportedly used its renewable energy sources for years to operate a Bitcoin mining operation. A government representative said the trial started when BTC was worth around $ 5,000. It is worth noting that the primary cryptocurrency of this level reached for the first time in October 2017.

Another country that did this is El Salvador. The Latin American nation, which was the first Bitcoin within its borders to the legal means of payment, has begun with the breakdown of BTC with energy from volcanoes.

Bhutan's secret BTC ripening

According to the reporting of Forbes, the Himalayan-Land has used its huge hydropower resources to build a state Bitcoin mine without revealing it to the public. However, a government representative supposedly said that the nation had started to reduce BTC as one of the first market participants a few years ago when the price of Bitcoin was around $ 5,000.

Although the exact schedule as to when the nation jumped on the moving train is not revealed, you could make certain suggestions. The leading digital financial value price reached $ 5,000 for the first time in October 2017 and remained above until November 2018 when it fell below $ 4,000. BTC conquered this level in April 2019 and only briefly slipped below this level during the Covid 19 pandemic.

Therefore it can be assumed that the Bhutan government has been involved in BTC mining for at least three years.

remains unclear, why the legislator did not disclose the forays of broad society where the mine is located or whether it has dropped a profit.

The report further revealed that the Bhutanian government has entered into a partnership with the mining company Bitdeer listed at the Nasdaq. An investor of the company brought more light into cooperation:

"We expect to produce 100 MW from the 550 MW power supply from BHUTAN, where the construction of the mining data center is expected to begin in the second quarter of 2023 and be completed in the third quarter of 2024."

Another factor that shows that the Asian nation started such a BTC project is the massive purchase of computer chips. Forbes claimed to have imported such articles worth $ 193 million in recent years.

Some believe that it is high time that the Bhutan government discloses its efforts to the locals. Others, like a former international consultant, whose name was not mentioned, believe that the country should be extremely careful due to the risky nature of cryptocurrencies and especially Bitcoin:

"It is worrying that Bhutan's resources were secretly invested in a highly volatile and risky investment that brings with it."

Why mining Bitcoin?

A main reason for the BTC mining project could be the enormous resources of the country and the hydropower capacity of the numerous local rivers. Jaran Mellerud - Analyst at Luxor - supports this thesis:

"It is no surprise that companies have to dismantle Bitcoin in Bhutan. Compared to its small population, the mountainous country has an enormous hydropower capacity and produces a lot of electricity per capita-a much wealthy country. It is to convert undervalued electricity into Bitcoin. ”

In fact, Bhutan produces so much electricity that, when the rainy rivers flood, it exports around 75 % of its annual crowds to its western neighboring country.

Mining BTC could become profitable for the country if the price of the financial value increases over the years and benefits the region. The step could also provide Bhutan in the event of a global introduction of cryptocurrency and its possible development in the trading scene.

El Salvador is another example

When you talk about the correlation between Bitcoin and the countries, you should mention El Salvador. The Central American nation, led by President Nayib Bukele, accepted the asset in 2021 as a legal means of payment and announced plans to reduce BTC using energy from local volcanoes.

It also designed a high-tech city called "Bitcoin City", which will use the primary digital asset as an official currency. It will be near the Vulkane Conchaagua and Tecapa and use their geothermal energy to supply yourself with electricity.

The futuristic urban project recently An international award for its architecture and interior design.

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