The Kingdom of Bhutan bets on Bitcoin (BTC). Following the revelation that the small Himalayan kingdom has been quietly accumulating cryptocurrency, the country is also mining Bitcoin. Besides, andThis country of less than 800,000 people harnesses green energy to power its Bitcoin mining operations.
Known for its “Gross National Happiness” and its picturesque landscapes, Bhutan has found ways to harness its immense hydroelectric potential, which accounts for 30% of its gross domestic product.
Initially reported in a post on local Bhutanese news and followed by inquiries from Forbes, Bhutanese officials confirmed that mining began when the price of Bitcoin hovered around $5,000 in April 2019. The price per Bitcoin has since skyrocketed to approximately USD 28,000 per coin at the time of writing this article.
According to reports, the Kingdom has explored partnerships to further expand its mining operations. In particular, it is negotiating with Nasdaq-listed mining company Bitdeer to secure 100 megawatts of power for a Bitcoin mining data center in Bhutan. This partnership would increase Bitdeer’s mining capacity by 12%.
The scale of Bhutan’s mining operations remains a mystery, with little information available on the location, size, and profitability of its mining operations. Some employees of Druk Holding and Investments (DHI) have listed “cryptocurrency mining” among their tasks and skills on their LinkedIn profiles.
It is also unclear why the government chose not to disclose this project to its citizens or international partners. However, State holding company DHI is known to have invested millions of dollars in cryptocurrency holdings, with the funds managed on behalf of its people.
Despite mainstream media reports to the contrary, Bitcoin mining is the cleanest industry in the world, with more than 50% of its energy sources being renewable or clean.. Proponents of Bitcoin mining, such as MicroStrategy President Michael Saylor, explain that “99.92% of the world’s carbon emissions are due to industrial uses of energy other than Bitcoin mining.” Due to cheap and abundant hydropower, DHI reported that Bhutan is an ideal destination for Bitcoin mining.
Bhutan joins a long list of regions from East Africa to Scandinavia that mine Bitcoin with hydropower, one of the cheapest clean energy sources.
Cointelegraph has reached out to Druk Holding and Investments and will update the article when it receives feedback.
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