Bhutan Turns Hydropower into Bitcoin Gold to Boost the Economy

Bhutan's decision to embrace mining/" onclick="event.preventDefault(); var width = 350; var height = 600; var left = Math.max(0, (window.innerWidth - width) / 2 + window.screenX); var top = Math.max(0, (window.innerHeight - height) / 2 + window.screenY); window.open(this.href, 'newwindow', 'width=' + width + ',height=' + height + ',scrollbars=1,left=' + left + ',top=' + top); return false;">Bitcoin mining as a solution to its economic challenges is a bold and innovative move that leverages the nation's abundant hydropower resources. By turning surplus energy into a revenue-generating asset, the Himalayan kingdom is not only addressing issues like youth unemployment and declining tourism but also positioning itself as a unique player in the global cryptocurrency landscape. This strategic pivot reflects Bhutan's commitment to sustainability while exploring modern avenues for economic growth.

Bhutan's Bold Bet on Bitcoin: A Strategic Move Amid Economic Challenges

Bhutan, a small Himalayan kingdom, has turned to Bitcoin mining as a means to address its economic struggles. The country, known for its focus on happiness and sustainability, has utilized its abundant hydropower resources to fuel energy-intensive Bitcoin mining operations. According to Al Jazeera, Bhutan's Prime Minister Tshering Tobgay highlighted that surplus energy generated during summer months is now being used for mining Bitcoin, a move he described as a "simple strategic choice."

In 2023, Bhutan sold $100 million worth of cryptocurrency to double the salaries of its civil servants, which helped reduce the number of resignations in the public sector. The Royal Monetary Authority reported that tourism, a key contributor to Bhutan's GDP, brought in $334 million in 2023, but the country still struggles to attract tourists post-pandemic. Additionally, Bhutan faces a youth unemployment rate of 19% as of 2024, significantly higher than the global average of 13.6% in 2023.

"Instead of exporting [hydropower] at a very cheap rate, we are using it to mine Bitcoins in the high mountains of Bhutan," said Tenzing Lamsang, editor-in-chief of The Bhutanese newspaper.

Blockchain intelligence firm Arkham estimates Bhutan's Bitcoin holdings to be worth over $600 million, accounting for approximately 30% of the country's GDP. This strategic pivot aligns with Bhutan's values of sustainability while leveraging its natural resources for economic growth.

Key Economic Indicators	Value
Tourism Revenue (2023)	$334 million
GDP (2023)	$3.02 billion
Youth Unemployment Rate (2024)	19%

Summary: Bhutan's innovative use of Bitcoin mining, supported by its hydropower resources, is a strategic effort to combat economic challenges, including high unemployment and declining tourism revenue.

Bitcoin's Resilience Amid Market Turmoil

Bitcoin has demonstrated remarkable resilience despite recent market volatility. CNBC reported that the cryptocurrency's price remained stable at $85,000, even as global markets faced uncertainty. Analysts attribute this stability to improving network fundamentals and easing trade tensions between the U.S. and the EU.

Federal Reserve Governor Christopher Waller suggested that potential rate cuts could be implemented if tariffs are reinstated, which further bolstered market sentiment. Meanwhile, the CoinDesk 20 Index, which tracks the top 20 cryptocurrencies, rose by 1.2%, with notable gains in Solana (SOL) and Avalanche (AVAX).

Swissblock analysts highlighted that Bitcoin's network growth and stabilizing liquidity are key indicators of potential sustained growth. They noted that the inflow of new participants and reduced market volatility are creating a foundation for a more stable market environment.

Summary: Bitcoin's ability to maintain stability at $85,000 amidst global economic uncertainty underscores its growing resilience and the strengthening of its network fundamentals.

Wealthy Investors Drive Bitcoin Trading Surge

Gibraltar-based Xapo Bank reported a 14.2% increase in Bitcoin trading volume during the first quarter of 2025, as wealthy investors "bought the dip" amid market turbulence. According to Cointelegraph, this surge reflects long-term confidence in Bitcoin despite its underperformance earlier in the year, when it experienced a 13% decline in Q1.

Xapo Bank also noted a 50% quarter-on-quarter increase in euro deposits, driven by concerns over the U.S. dollar's primacy and fears of a potential recession. Additionally, the bank observed a shift in stablecoin deposit patterns, with USDC deposits rising by 19.8% and Tether (USDT) deposits declining by 13.4%.

Gadi Chait, Xapo Bank’s head of investment, emphasized that Bitcoin's long-term potential remains strong despite short-term volatility. The bank's data suggests that its high-net-worth members view Bitcoin as a reliable asset for savings and investment.

Summary: Xapo Bank's Q1 trading surge highlights the confidence of wealthy investors in Bitcoin's long-term potential, even amidst market challenges.

Einschätzung der Redaktion

Bhutans Entscheidung, Bitcoin-Mining als wirtschaftliche Strategie zu nutzen, ist ein bemerkenswertes Beispiel für die innovative Nutzung natürlicher Ressourcen in einem globalen Kontext. Die Kombination aus überschüssiger Wasserkraft und der wachsenden Akzeptanz von Kryptowährungen zeigt, wie kleinere Volkswirtschaften alternative Wege zur Stärkung ihrer Finanzlage einschlagen können. Allerdings birgt diese Strategie auch Risiken, insbesondere angesichts der Volatilität des Kryptomarktes und der Abhängigkeit von externen Faktoren wie globalen Energiepreisen und regulatorischen Entwicklungen. Sollte Bhutan jedoch erfolgreich sein, könnte dies als Modell für andere ressourcenreiche, aber wirtschaftlich herausgeforderte Länder dienen.

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