Bhutan's Secret Crypto Investments: A Game-Changing Strategy for Small Nations?

[jbgsmininggmbh]

Source of this article: https://www.jbgsmining.com/en/post/bhutan-s-secret-crypto-investments-a-game-changing-strategy-for-small-nations

The Himalayan kingdom of Bhutan, known for its Gross National Happiness Index and largely agriculture-based economy, has been secretly investing millions of dollars in cryptocurrencies like Bitcoin and Ethereum. The investments were revealed through the bankruptcy filings of crypto lenders BlockFi and Celsius. This revelation raises questions about the reclusive nation's relationship to the turbulent crypto economy and could indicate a game-changing strategy for smaller nations seeking to gain an edge in the financial world.

According to court documents, Bhutan's $2.9 billion sovereign investment arm, Druk Holding & Investments, was a customer of BlockFi and Celsius, which it never publicly disclosed. In recent months, Druk withdrew over $65 million and deposited nearly $18 million in digital assets through Celsius. While the source and purpose of these funds remain unknown, these investments seem like a curious move for a holding company focused on promoting domestic ventures.

This secretive crypto investment could indicate a game-changing strategy for smaller nations. It seems to follow a game theoretical point of view where smaller nations and companies are the first to adopt cryptocurrencies, eventually leading to larger nations and corporations following suit. If Druk is indeed a sovereign wealth fund, it would be the first to directly own cryptocurrency, setting a precedent for other nations to follow.

The kingdom of Bhutan has shown interest in the crypto world, hosting a panel of blockchain advocates in 2020 and working with Ripple to pilot a central bank digital currency in 2021. These partnerships suggest that the nation sees potential benefits in embracing the world of cryptocurrencies and blockchain technology.

Bhutan's undisclosed investments in cryptocurrencies could represent a new financial strategy for small nations looking to compete in the global economy. By embracing cryptocurrencies and blockchain technology, Bhutan is following a game theoretical approach, where smaller nations and companies adopt new technologies before larger ones. As more countries and institutions recognize the potential benefits of cryptocurrencies, the trend could ultimately lead to widespread adoption and significant changes to the global financial landscape.



TL;DR:

Bhutan has been secretly investing millions of dollars in cryptocurrencies like Bitcoin and Ethereum, revealed through the bankruptcy filings of BlockFi and Celsius.

These investments could indicate a game-changing strategy for small nations, following a game theoretical point where smaller nations and companies adopt cryptocurrencies before larger ones.

Bhutan has shown interest in the crypto world, partnering with Ripple for a central bank digital currency pilot program and hosting blockchain advocates in 2020.

This trend could ultimately lead to widespread adoption of cryptocurrencies and significant changes to the global financial landscape.

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[jbgsmininggmbh]

i bet there are other nations that secretly stack sats.

[Who is John Galt?]

Druk Holding and Investments confirmed that Bhutan is mining Bitcoin and has also shown interest in mining Ethereum. They note that this is a purposeful policy for the economic development of the kingdom. And taking into account the fact that almost 100% of the country's energy is represented by renewable energy sources, this is also completely green mining, which makes this direction even more profitable for them. And as they say, they were not engaged in trading, and only from the sale of mined bitcoins pay off all the costs of mining. In general, one can only rejoice for Bhutan!

[death69]

I'm not one to dodge a daring move. I mean, I legit tried to make a pizza in a toaster once. But throwin' millions into cryptos? That's some major cojones. But you know the drill: fortune digs the audacious. And if Bhutan's secret crypto game pays off, they could be the pioneers of a new cash frontier.

This raises the question: what other secrets is Bhutan stashin'? A hidden underground pad with gold and priceless goodies? Or maybe they're secretly building a robot army for world domination? Time will spill the beans. Meanwhile, let's follow Bhutan's lead and jump into the crypto scene. Who knows, we might just score as the next Bitcoin big shots.

[NeuroticFish]

I've just read today on Twitter about Bhutan mining on hydro power.
At first I was surprised. But then... indeed, Bitcoin is easy money. Some governments understand that and use it in their (and their nations') favor, most of the others... keep following the agende of their sponsors.

I'm not sure that this is specific to small nations, though in the case of small nations the influence of big banking system may not be that strong.. and that helps...

[Kryptowerk]

Source of this article: https://www.jbgsmining.com/en/post/bhutan-s-secret-crypto-investments-a-game-changing-strategy-for-small-nations

The Himalayan kingdom of Bhutan, known for its Gross National Happiness Index and largely agriculture-based economy, has been secretly investing millions of dollars in cryptocurrencies like Bitcoin and Ethereum. The investments were revealed through the bankruptcy filings of crypto lenders BlockFi and Celsius. This revelation raises questions about the reclusive nation's relationship to the turbulent crypto economy and could indicate a game-changing strategy for smaller nations seeking to gain an edge in the financial world.

According to court documents, Bhutan's $2.9 billion sovereign investment arm, Druk Holding & Investments, was a customer of BlockFi and Celsius, which it never publicly disclosed. In recent months, Druk withdrew over $65 million and deposited nearly $18 million in digital assets through Celsius. While the source and purpose of these funds remain unknown, these investments seem like a curious move for a holding company focused on promoting domestic ventures.

This secretive crypto investment could indicate a game-changing strategy for smaller nations. It seems to follow a game theoretical point of view where smaller nations and companies are the first to adopt cryptocurrencies, eventually leading to larger nations and corporations following suit. If Druk is indeed a sovereign wealth fund, it would be the first to directly own cryptocurrency, setting a precedent for other nations to follow.

The kingdom of Bhutan has shown interest in the crypto world, hosting a panel of blockchain advocates in 2020 and working with Ripple to pilot a central bank digital currency in 2021. These partnerships suggest that the nation sees potential benefits in embracing the world of cryptocurrencies and blockchain technology.

Bhutan's undisclosed investments in cryptocurrencies could represent a new financial strategy for small nations looking to compete in the global economy. By embracing cryptocurrencies and blockchain technology, Bhutan is following a game theoretical approach, where smaller nations and companies adopt new technologies before larger ones. As more countries and institutions recognize the potential benefits of cryptocurrencies, the trend could ultimately lead to widespread adoption and significant changes to the global financial landscape.



TL;DR:

Bhutan has been secretly investing millions of dollars in cryptocurrencies like Bitcoin and Ethereum, revealed through the bankruptcy filings of BlockFi and Celsius.

These investments could indicate a game-changing strategy for small nations, following a game theoretical point where smaller nations and companies adopt cryptocurrencies before larger ones.

Bhutan has shown interest in the crypto world, partnering with Ripple for a central bank digital currency pilot program and hosting blockchain advocates in 2020.

This trend could ultimately lead to widespread adoption of cryptocurrencies and significant changes to the global financial landscape.

Why do just 1:1 copy paste an article here? I thought the tldr was at least created by you, but it's also part of the article.
Here is the original source from forbes: https://www.forbes.com/sites/iainmartin/2023/04/15/the-tiny-kingdom-of-bhutan-secretly-held-millions-of-dollars-in-cryptocurrency/?sh=354c6e87f1d6

Not too suprised by the content of the article though. Even for a tiny state such aus Bhutan, "millions of USD" isn't really much.
And sure, most states have different sorts of reserves, including gold and some natural resources, seems just like the logic next step to include solid crypto, meaning Bitcoin, too.

[ImThour]

It's great that small nations are preferring latest technology and investing fairly early init to be the early one's so they can have massive profits once the big nations start investing.
Good job from Bhutan, they should just make it their official currency as well to improve tourism just as El Salvador did.

[retreat]

Bhutan has been secretly investing millions of dollars in cryptocurrencies like Bitcoin and Ethereum, revealed through the bankruptcy filings of BlockFi and Celsius.

What the Bhutanese government is doing now could have a positive impact on their financial condition in the future. They diversify their investments in Bitcoin, Ethereum, and several other cryptos which is very good for a small country like them and that has been proven by El Salvador where after the adoption of Bitcoin the economy of their country has improved quite a bit. Especially here, the Bhutanese government is carrying out mining projects using renewable energy and of course that will be very good in the future. Hopefully other small countries can follow Bhutan's steps because Bitcoin and Altcoins are one of the steps for global economic equality.

[Kryptowerk]

It's great that small nations are preferring latest technology and investing fairly early init to be the early one's so they can have massive profits once the big nations start investing.
Good job from Bhutan, they should just make it their official currency as well to improve tourism just as El Salvador did.

As much as I support the idea, I think the best way would be to create just a tax or similar funding advantages for any business accepting Bitcoin as a form of payment. This, together with a well presented short education program on the topic would benefit both massively: Bitcoin itself and the tech sector of tiny country such as Bhutan.
No need to call it official currency - just give it a place among other means of payment to make Bitcoin very attractive for both merchants/companies and customers.
This would attract modern businesses, as well as increase crypto tourism and jump-start a new tech-sector focused around crypto.

[Who is John Galt?]

Bhutan plans to further develop the mining industry of its economy. In cooperation with Singapore's Bitdeer Technologies Group, Bhutan plans to build a 600 megawatt farm. For these purposes, they hope to attract $500 million from investors.

With such ambitious plans and opportunities to organize hydropower in the country, Bhutan can become one of the major players in the mining market in the world.

[franky1]

it might also be worth a read of the BIS organisation (they perform the settlements for international banks), who have in recent policies seen a call from many banks to want BIS to allow banks to hoard upto 5% of banks reserves in crypto exposure. however BIS fired back with a 1-2% compromise

https://www.bis.org/bcbs/publ/d545.pdf - Group 2 exposure limit
(group 1 being stable coins.. group 2 being other crypto assets like bitcoin ethereum and such)

[Fiatless]

TL;DR:

Bhutan has been secretly investing millions of dollars in cryptocurrencies like Bitcoin and Ethereum, revealed through the bankruptcy filings of BlockFi and Celsius.

I don't know where the Kingdom of Bhutan gets financial advice on cryptocurrency investment but I think they are not getting the complete information or are motivated by greed. Do they really need to use exchanges or crypto firms like BlockFii and Celsius to invest in or buy Bitcoin? All they would have done was to set up a governmental agency that will handle the mining, buying, storing, and selling of any cryptocurrency. Investing through these centralized exchanges or platforms is very risky.

These investments could indicate a game-changing strategy for small nations, following a game theoretical point where smaller nations and companies adopt cryptocurrencies before larger ones.

The investment of Bhutam and other small nations might look insignificant based on the amount they can afford to invest. But this is a plus to the Bitcoin space because it will lead to an increase in awareness and adoption. These developing nations are seeking diverse means to diversify their economy and attract investors and capital.

Bhutan plans to further develop the mining industry of its economy. In cooperation with Singapore's Bitdeer Technologies Group, Bhutan plans to build a 600 megawatt farm. For these purposes, they hope to attract $500 million from investors.

With such ambitious plans and opportunities to organize hydropower in the country, Bhutan can become one of the major players in the mining market in the world.

Bhutan is indeed setting the pace for other nations to follow. Hydropower electricity is not a totally clean and green energy but it is far better than using oil and gas powered electricity generators. I am surprised that is a relatively unknown country that is tapping into the benefits of bitcoin.

[Blitzboy]

Maybe this move by Bhutan is less about immediate profit, and more about positioning itself for a future where cryptocurrencies hold sway. Looking at their domestic actions - hosting blockchain advocates, working with Ripple - one could say they're doing their homework diligently. What's the endgame here? Could it be to set a new financial precedent for small nations? The idea seems plausible, if daring. Still, isn't it strange that such transactions were only brought to light due to the bankruptcy filings of BlockFi and Celsius? Perhaps this indicates a need for greater transparency in the crypto world. That being said, Bhutan's case will surely provide an interesting case study for the global adoption of cryptocurrencies!

[Happy Waters]

Gross National Happiness Index!

OP I only had one single merit to give and you just got it.   

[Who is John Galt?]

Bhutan is indeed setting the pace for other nations to follow. Hydropower electricity is not a totally clean and green energy but it is far better than using oil and gas powered electricity generators. I am surprised that is a relatively unknown country that is tapping into the benefits of bitcoin.

This is an excellent example of the innovative development of the country's economy. In addition to the development of hydropower, which, as you rightly point out, is much better than burning hydrocarbons, which is already very relevant, Bhutan is also developing mining, which is an ultra-modern IT field at its very front. Bitcoin is a completely new technology, and those who have time to join it at the very beginning will reap the greatest benefits in the future. And for a small economy, these benefits can be a significant leap forward!

[boyptc]

i bet there are other nations that secretly stack sats.

That is for sure.

They don't just want to make a noise that they're in and if there's money on it, why waste effort into making noise while making money silently?

While Bitcoin is already on the mainstream, maybe in reality there are still a very few number of countries that still don't know or don't like Bitcoin.

But if they're going to use their resources and secretly mine and accumulate sats then they'll benefit from it. They don't have to invest a lot but if their country is plausible for greener energy and the climate is better, that's a great prospect to start mining with them and have those equipment delivered to them and have it setup so that it can start make money for them.

[AmoreJaz]

i bet there are other nations that secretly stack sats.

That is for sure.

They don't just want to make a noise that they're in and if there's money on it, why waste effort into making noise while making money silently?

While Bitcoin is already on the mainstream, maybe in reality there are still a very few number of countries that still don't know or don't like Bitcoin.

But if they're going to use their resources and secretly mine and accumulate sats then they'll benefit from it. They don't have to invest a lot but if their country is plausible for greener energy and the climate is better, that's a great prospect to start mining with them and have those equipment delivered to them and have it setup so that it can start make money for them.

not only governments but many politicians as well. this is one very good avenue for them to hide their riches, right?
so more then likely a lot of politicians esp those with high percentage of corrupt officials are silently accumulating some of these cryptocurrencies. a lot of them are holding their crypto discreetly to avoid criticisms as well as not disclosing their wealth to the public. you won't tax a person if they don't declare this in their assets.

[panganib999]

I guess good for them, but at the same time this is nothing new. A lot of smaller countries with relatively well-off economies like Bhutan, and just in 2021 El Salvador have invested in bitcoin and cryptocurrencies. There's just a massive potential for profit and in a national scale, with all the capacities to earn and use up money to invest in such assets, this shows great promise. Although of course, it directly correlates and is dependent on the fact that the country shouldn't have a shitty/corrupt government, otherwise all your investment green or red will definitely go to the pockets of the few. Much like what is happening in the Philippines now with their "Maharlika Funds"

So good news for bitcoin and cryptocurrency I guess, one step forward to being globally accepted in the industry most definitely.

[cryptomaniac_xxx]

I think we all know that at some point, some government could have been investing in bitcoin and other cryptos, whether in secrecy or not. Specially for underdeveloped and 3rd world countries, because they might have seen bitcoin as some means to give them extra profit in the future. Maybe Bhutan doesn't like to get this in public and then have pressure on the side from agencies like IMF (like what they did to El Salvador), but it is what is it for this government. They will have to do something that will help their country so I guess there's nothing wrong with this kind of move. Although those investments are not that huge though, but still it might bring them some positive impact down the line.

[mindrust]

Bhutan was wise to invest in crypto. They probably see the death of FIAT in the future just like any of us bitcoiners. However, I don’t understand why they made investments in secret? Are they afraid of their citizens’ response? As a government It is no good to make investments without informing your people because some people might see this as an act of gambling. And if that’s the case then that means the government is doing it against the will of their people and I can’t approve this.

[avikz]

It's already been a couple of months, Bhutan has started doing this. If you see the past trends, you will see multiple small nations have shown interest in cryptocurrency and changed their policies to welcome it. I have been to Bhutan once in my life when I was in school and I candidly remember the country and their hospitality. But the fact is that Bhutan has a very small landmass. So they can't build a huge heavy engineering project which can provide employment to their citizens. So they are trying to invest in such projects which don't need a huge amount of land. That's where cryptocurrency mining fits the bill. Also Bhutan has access to cheap electricity due to the hydropower projects they have in their country.

I would say it's the right move towards a better future. Even though Bhutan has officially moved to democracy, its King is the most influential person. But they just need to stay out of China's influence for long term growth.

[Bureau]

Bhutan is a land lock country that borders both India and China. India provides everything that you can expect to the Kingdom. The news of Bhutan mining Bitcoin using renewable source of energy comes as a shock to me. They don't have the capability nor the technical knowledge of setting up mining grids. This might sound a conspiracy to many here but I believe India is involved here. I may not be able to prove it but without India's help they cannot do anything.

[stompix]

They don't have the capability nor the technical knowledge of setting up mining grids. This might sound a conspiracy to many here but I believe India is involved here.

So what's this secret technical knowledge that's involved in setting a mining farm?

If you have the knowledge of setting up a datacenter then you have the knowledge of setting up a bitcoin mining farm when it comes to technicals.
You don't need the help of a country when you do this on a large scale because if you place a +million orders with Bitmain you can talk to them on expertise in setting things up. Also, no offense, but India has as much expertise in this field as Vanuatu!

Besides, why would be India interested in Bhutan using electricity to mine when instead they could simply force them to sell all that electricity they have nothing to do with cheap to India itself?

But the fact is that Bhutan has a very small landmass. So they can't build a huge heavy engineering project which can provide employment to their citizens.

Bhutan is the size of Switzerland and Taiwan, just as you can build a hundred dams or smelters for whatever you mine you can build everything else.

[boyptc]

i bet there are other nations that secretly stack sats.

That is for sure.

They don't just want to make a noise that they're in and if there's money on it, why waste effort into making noise while making money silently?

While Bitcoin is already on the mainstream, maybe in reality there are still a very few number of countries that still don't know or don't like Bitcoin.

But if they're going to use their resources and secretly mine and accumulate sats then they'll benefit from it. They don't have to invest a lot but if their country is plausible for greener energy and the climate is better, that's a great prospect to start mining with them and have those equipment delivered to them and have it setup so that it can start make money for them.

not only governments but many politicians as well. this is one very good avenue for them to hide their riches, right?
so more then likely a lot of politicians esp those with high percentage of corrupt officials are silently accumulating some of these cryptocurrencies. a lot of them are holding their crypto discreetly to avoid criticisms as well as not disclosing their wealth to the public. you won't tax a person if they don't declare this in their assets.

It's much better if it goes to the actual government rather than individual politicians because with its actual government, the fund will go actually to the government and can be spent into good programs. While if it's with these politicians, they can conduct it individually and that can be a private operations on their own.

While they have the money to buy the equipment and start their own mining operations. No one can even know that they're into it while running it and acting as government official.

Well, it's being considered that politicians are also the government because they're part of it but in some countries, it's known that they can't be trusted with public's fund.

[aioc]

Bhutan has been secretly investing millions of dollars in cryptocurrencies like Bitcoin and Ethereum, revealed through the bankruptcy filings of BlockFi and Celsius.

These investments could indicate a game-changing strategy for small nations, following a game theoretical point where smaller nations and companies adopt cryptocurrencies before larger ones.

Bhutan has shown interest in the crypto world, partnering with Ripple for a central bank digital currency pilot program and hosting blockchain advocates in 2020.

This is a big surprise in the Crypto community it should have been rich countries like Japan or the middle east but Bhutan, I have to Google where Bhutan is and its economic condition, whoever recommends investing in Bitcoin is a genius and deserves to have a position in the kingdom of Bhutan.

I wish my country is like Bhutan but it was met by negativism, although our country is now more open to adopting Cryptocurrency it's the private companies that push it to get adopted because of the taxes the government will receive.

There could be many more Bhutan-like countries that are not yet discovered, it's a mere incident that they are discovered this is indeed a good move.

[348Judah]

The good thing to write about Bhutan is that as little as the country is, it has never been suspected to have been engaging in bitcoin mining over years until recent discovery, i count it a lesson to others to learn just from this little lesson, how they were able to maintain privacy in bitcoin mining over the years, some people have achieved nothing bit yet too lousy in the public, yet Bhutan moved ahead to establish a renewable energy source for this bitcoin mining, this will also give them the use of the mining rig at maximum because there won't be challenge on electricity demand since they are pleating under natural renewable source.

[Webetcoins]

Well, it could definitely be a game-changing strategy for nations that don't have very strong economies or aren't able to get themselves going in world development only because they lack funds and have already taken a lot of loans and has a lot of debt to pay. Considering they have been buying Bitcoins since it was at its lowest last year, they will have huge profits when the price crosses its previous all-time high.

This is only one nation, and there might be more that are doing the same thing but we are still unaware of it, as the time passes by, nations that are secretly stacking Bitcoins and other cryptocurrencies will start to come out and we might see the real revolution then.

[kryptqnick]

If we learned about it from the bankruptcy filings, it unfortunately means that the investments were stored on centralized platforms (without adhering to the 'not your keys, not your coins' rule), and it didn't go well. In any case, if they have almost $3 billion to invest, it seems they only invested less than 5% of that in cryptos, so it can just be a small experiment. Such a share of investment going into cryptos means some are willing to experiment with it, but aren't willing to actually risk it or prefer it over traditional investments and assets.