Despite its small population, Bhutan has taken a leading position among countries with significant Bitcoin reserves, ranking just behind the US and the UK.
Significant Bitcoin Reserves
As of the latest data, Bhutan holds Bitcoin reserves worth $782.46 million, surpassing El Salvador's reserves of $351.75 million. Despite having a population of 782,000, Bhutan's Bitcoin reserves are more than double those of El Salvador, which has a population of 6.3 million. This places Bhutan third on the Sovereign Bitcoin Assets Leaderboard, behind the US ($12.16 billion) and the UK ($3.67 billion).
Role of Hydropower
Bhutan's significant Bitcoin holdings can be attributed to the country's growing mining operations, which began in April 2019 when BTC was valued at around $5,000. The country's sovereign investment arm, Druk Holding & Investments, confirmed its foray into mining at the time. Since then, Bhutan has used its vast hydropower resources to fuel large-scale mining operations.
Hydropower Potential
Bhutan’s Himalayan glacier-fed rivers provide a significant source of clean, renewable energy, with 23,760 MW of technically feasible hydroelectric capacity. Hydroelectricity accounts for 30% of Bhutan’s GDP, and in 2003, 99.5% of the country’s electricity came from hydropower. This clean energy infrastructure has allowed Bhutan to maintain its environmental commitments while expanding its Bitcoin mining operations. To put Bhutan’s hydroelectric potential into perspective, the country’s total applicable capacity could power more than 17 million American homes, or more than double the energy needs of a city like New York.
Bhutan's substantial Bitcoin reserves, supported by its extensive hydropower resources, demonstrate the country's significant progress in cryptocurrency mining. Despite its small size and population, Bhutan has managed to take a leading position on the global stage.
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