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Now it’s time to learn Dzongkha. It is the language of Bhutan, a South Asian country on the eastern edge of the Himalayas that is one of two countries currently confirmed to mine Bitcoin (BTC) (the other is El Salvador).
Bhutan’s fateful decision to build a world-class hydroelectric power production infrastructure to tap into one of the world’s largest water reserves and take advantage of the country’s dramatic change in attitude towards creating fast-flowing rivers and making Bhutan a pristine natural environment. I’ve made a decision. A haven for hydroelectric power.
With so much power available, much of which is being sent to neighboring, energy-poor India, the country decided to start building Bitcoin mines with the official goal of ensuring the country’s economic self-reliance and socio-economic development.
In fact, Bhutan leverages its hydroelectric infrastructure to mine Bitcoin, ensuring self-reliance and socio-economic development. We can further ensure this by being the first country on earth to adopt the Bitcoin standard.
Bitcoin Mining Now Creates New Currency Possibilities
Bhutan currently holds over 13,000 BTC, according to Arkham Intelligence, which was the first to identify Bitcoin addresses in Bhutan.
These holdings make Bhutan the fourth-largest government holding of Bitcoin in the world, after the United States, China, and the United Kingdom, which have all confiscated BTC during law enforcement operations. In fact, Bhutan is ahead of El Salvador. And from 2023, Bhutan has only increased its Bitcoin mining capacity.
From the tropical southern plains to the harsh winters and cool summers of the northern Himalayas, Bhutan has a population of one million. So, as of this writing, the country’s Bitcoin reserves are equivalent to approximately 0.122 BTC, or nearly $8,000 per capita.
As Bhutan’s Bitcoin holdings and mining infrastructure gain domestic and geopolitical relevance amid the devaluation of fiat currencies around the world, Bhutan will be best positioned to innovate in the areas of monetary policy and Bitcoin. no see.
On a Bitcoin basis, Bhutan can maintain its currency unit, the Ngultrum. This is consistent with countries maintaining their currencies pegged to gold under the gold standard of the 19th and early 20th centuries.
Therefore, Bhutan’s currency circulates alongside Bitcoin and is simultaneously pegged to Bitcoin. This means that the notes can be redeemed for BTC. Since the currency is not fully backed by Bitcoin, it remains in trust.
Under the gold standard, central banks backed issued paper money partially with gold. Bhutan’s monetary authorities will probably define the amount of Bitcoin to be pegged to the currency unit.
However, under Bitcoin standards, there will be sacrifices on the part of the state. If it adopts the Bitcoin standard, Bhutan would not be able to implement interest rate policies that would change the country’s economic situation without lifting the peg to Bitcoin. This is something every country can eventually be tempted to do.
Times are changing in Bhutan.
Bhutan did not have electricity until 1966. In comparison, Britain opened its first hydroelectric power plant in 1878, and the United States opened its first power plant in 1882. Currently, Bhutan proves this despite being 133rd in land area and 160th in population. He himself is a leader of the 21st century.
The country’s investments in hydroelectric power have already boosted economic growth. Bhutan’s decision to tap its water resources for electricity production and use some of that electricity for Bitcoin mining could significantly change the landlocked country’s economic outlook through the accumulation of Bitcoin alone.
By backing Ngultrum with Bitcoin, Bhutan will shock the known world by advancing the Bitcoin standard just as the world was on the classical gold standard. Bhutan could write standard Bitcoin “rules of the game” to follow as countries adopt a better lifestyle than central bank fiat currencies.
If Bhutan adopts the Bitcoin standard, it could one day serve as a lender of last resort for countries and institutions facing serious crises. As Warren E. Weber of the Bank of Canada argued in a 2015 thought experiment, under Bitcoin standards Bhutan could expect “mild deflation, low nominal interest rates, and good output growth under Bitcoin standards.”