The small, picturesque Himalayan nation of Bhutan has embraced Bitcoin, not only by accumulating cryptocurrency but also by using green energy to mine it. This is an incredible example of how tradition and technology are capable to co-existing in peace and prosperity.
With a population of under 800,000, the country is well-known for its focus on “Gross National Happiness” and its stunning landscapes. It’s also one of my favourite places in the world, and the news that they’ve been mining and accumulating Bitcoin for years prompted me to discuss this incredible little territory and its role in cryptocurrency adoption.
Bhutan is Carbon Negative
Bhutan is not only carbon-neutral but is actually carbon-negative, meaning that it absorbs more carbon dioxide from the atmosphere than it produces. The country’s forests play a crucial role in achieving this remarkable feat. The Bhutanese government has implemented policies to protect its forests, which cover more than 70% of the country’s land area. In Bhutan, cutting down trees is strictly regulated, and the government has even imposed a ban on exporting timber. The country has also committed to keeping at least 60% of its land under forest cover. This has helped Bhutan to maintain its carbon-negative status.
The fact that this country has been able to Mine Bitcoin and be a carbon-negative territory is an incredibly strong point for cryptocurrency adoption and completely demolishes the fallacy that mining Bitcoin is bad for the environment. In fact, Bhutan proves that it’s good for the environment and the economy!
Hydro-powered Bitcoin
Bhutan is able to achieve this incredible balance by actively pursuing renewable energy sources such as hydropower. The country has a number of hydropower plants, which generate clean energy and help to reduce its carbon footprint. In fact, Bhutan exports most of its hydropower to neighboring countries, which further contributes to its economy.
Bhutan’s hydroelectric potential, which constitutes 30% of its GDP, has allowed the country to capitalize on this resource for Bitcoin mining. Inquiries by Forbes, following an exposé in a Bhutanese news outlet, revealed that the Kingdom began mining Bitcoin in April 2019, when the digital currency was valued at around $5,000. Since then, the price per Bitcoin has skyrocketed to approximately $28,000 with an all time high of $65,000.
Bhutan’s Crypto Mining Partnerships
Bhutan is actively pursuing collaborations to grow its mining operations. The Kingdom is in discussions with Bitdeer, a Nasdaq-listed mining company, to secure 100 megawatts of power for a Bitcoin mining data center in the country. If successful, this partnership would increase Bitdeer’s mining capacity by roughly 12%.
Details surrounding the scale of Bhutan’s mining operations remain scant, with limited information on the location, size, and profitability of its mining farms. However, some Druk Holding and Investments (DHI) employees have mentioned “crypto mining” in their LinkedIn profiles.
The Bhutanese government’s decision to not disclose this project to its citizens or international partners remains unclear. Nevertheless, it is known that DHI, the state-owned holding company, has invested millions of dollars in cryptocurrency holdings on behalf of its people.
The Philosophy Bhutan
The reason Bhutan is able to achieve this level of balance between, a healthy economy, a healthy environment and a happy population, is because Bhutan does put the environment and its first, unlike most other countries that only consider it a resource to be exploited.
For instance, the Bhutanese government has banned the import, sale, and use of plastic bags, and violators of the ban are subject to fines and even imprisonment. Instead of plastic bags, Bhutanese citizens are encouraged to use reusable cloth bags, bamboo baskets, and traditional woven bags made from natural fibers.
The ban on plastic bags has been successful in reducing the amount of plastic waste in the country. Bhutan is one of the few countries in the world that has managed to completely eliminate the use of plastic bags, and this has contributed to its reputation as an eco-friendly destination.
Bhutan has also taken steps to reduce light pollution. For instance Thimphu, the capital city of Bhutan, is one of the few cities in the world without traffic lights. The city’s roads are managed by traffic police officers, who use hand gestures and whistles to direct traffic.
The decision to not have traffic lights in Thimphu was made to preserve the city’s unique culture and heritage. The absence of traffic lights in Thimphu is a reflection of Bhutan philosophy of balance.
In Conclusion
Bhutan seems to have pulled off what other countries only dream of. Even if just at the inception stage, Bhutan seems to have developed and is actively nurturing a governance philosophy that emphasizes balance and prosperity for the environment, the people, and more recently the economy, by turning their surplus of hydro-generated electricity into eco-friendly Bitcoin mining operations.
It’s a balance that I can only hope more countries would adhere to. Peace.
All Comments