The Kingdom of Bhutan Supposedly Been Mining Bitcoin for Six Years

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It’s not just El Salvador anymore. There have been many reports of other countries mining BTC, and the last one is all but confirmed for the Kingdom of Bhutan. According to Forbes, the landlocked country near India has been stockpiling computer chips for the past few years. It may have secretly been mining Bitcoin since October 2017, as per reports it has been doing so since the price reached $5,000.

It’s not that surprising to see Bhutan on the list of Bitcoin mining countries. It’s the perfect spot for it thanks to nearly endless hydroelectricity resources. These helped establish a secret government-run Bitcoin mine that has been going on for years.

Vast Hydroelectricity Resources and Energy

Bhutan is one of the world’s top countries when it comes to electricity exports. During the flood season, it exports around 75% of its annually generated amount to its first neighbor – India. The mountainous country has incredible hydropower capacity and a small population. It produces a similar amount of electricity per capita as the USA, but of course, it’s not nearly as wealthy.

But, it could be considering how it uses that energy to mine Bitcoin. If the asset’s price reaches higher levels in the coming years, Bhutan could make a literal fortune. Since it apparently started mining Bitcoin at a price point of $5,000, imagine what would happen if it reaches the magical level of $100,000.

In the past few years, the Kingdom of Bhutan has been ordering a stockpile of computer chips – $193 million worth of them. No matter how hard it tries to keep its BTC mining under control, the chips give it away. What’s problematic for most experts is the fact that the country is using environmental resources to mine Bitcoin in a secretive matter, which obviously has an impact on the environment around it.

Many experts and Bhutan residents think its time the government admits what it’s doing. Most recently, it has partnered with Bitdeer, a crypto mining company listed on Nasdaq. An investor from the company has shed more light on the collab, expecting to generate 100 MW out of the 550 MW power supply from Bhutan. The data center should begin construction in the second part of 2023 and be fully completed in the third quarter in 2024.

Not the First Country to Mine BTC

While the rest of the world is still slow to accept Bitcoin, El Salvador has been doing it for years. More importantly, the small South American country has officially legalized mining and Bitcoin transactions, even planning the so-called Bitcoin City which runs on active volcano power. Geothermal energy is a great idea for BTC mining, and El Salvador expect to use it to its full potential.

Bhutan may have been doing it for years, although using stored energy it produces on its own instead of geothermals. The cat’s already out of the bag, so it should and must admit that it’s mining BTC, probably much to the dismay of environmentalists.

May 3, 2023: • No Comments

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