I recently had the unique opportunity to visit the remote and fascinating kingdom of Bhutan. Bhutan — sandwiched between India in the south and China in the north — is known for its breathtaking landscape in the Himalayas and its deep-rooted Buddhist tradition. It is difficult to reach, less industrialized and heavily influenced by agriculture. However, something surprising took place in this remote country: Bhutan developed a serious Bitcoin strategy, and that was the main reason for my trip.
I was there in the course of the Bhutan Innovation Forum, the biggest conference Bhutan has ever seen. There I held a presentation about Bitcoin and blockchain and was part of a small, unofficial delegation of German-speaking Bitcoiners. When I arrived, I was curious why Bhutan — a country that relies heavily on tradition and spirituality — is taking Bitcoin so seriously.
The reason is simple: Bhutan produces 100% renewable energy from hydropower. The young king has realized that Bitcoin mining offers a way to use this energy in order to generate capital for the country. Today, Bhutan exports a large share of its electricity to India, but Bitcoin mining allows the country to further expand its hydropower while becoming more independent.
In the last two years, Bhutan has invested more than 500 million dollars in Bitcoin mining — a huge sum for a country with only around 3 billion dollars of annual gross domestic product. More than 150 people are now working on mining infrastructure for the sovereign wealth fund, and Bhutan has even teamed up with mining company Bitdeer to further expand capacities.
What particularly impressed me was Bhutan's sustainable approach. The country is “carbon-negative,” meaning it removes more CO2 from the atmosphere than it produces. For a country like Bhutan, which is extremely environmentally conscious, Bitcoin mining is a surprisingly good fit. It shows that mining, which is often criticized, can even have a positive effect with the right energy source.
During my trip lasting several days, I also visited the project in planning Gelephu Mindfulness City. This new city is intended to connect Bhutan more closely to the outside world and at the same time maintain the balance between tradition and progress. A new international airport is intended to facilitate access, and the urban project represents the king's efforts to open up the country to new technologies and ideas.
What I found particularly fascinating was the close connection between Bhutan's philosophy and Bitcoin. While talking to local people — including representatives from the government and the famous “Institute for Happiness” — I realized that they see Bitcoin as a strategic tool to create economic opportunities. Bhutan pursues a concept that is not only measured by gross domestic product, but also by “gross national happiness.” This concept of quality of life instead of pure growth could also become more relevant in the West, particularly in times of fiat inflation and economic uncertainty.
One thing became particularly clear to me in Bhutan: Although the country is still in its infancy when it comes to Bitcoin, the king's strategy is far more advanced and serious than I've seen in other countries — even farther than in El Salvador. In Bhutan, it is not about using Bitcoin as an everyday currency, but a targeted plan to build a sustainable economy and offer opportunities to the young generation in the country.
Bhutan shows that Bitcoin mining — if done correctly — can not only lead to economic independence, but is also a way to expand renewable energy and improve the quality of life. This trip showed me that despite its remoteness, Bhutan could become an unexpected pioneer in the use of Bitcoin.
I am deeply impressed by the opportunities that Bhutan has discovered for itself and am excited to see how the country will develop in the coming years.
Niko Jilch is a financial journalist and entrepreneur with a focus on the digitization of money and the economy. With “Was Bitcoin bringt”, he runs one of the most popular podcasts and YouTube channels about Bitcoin and the financial world in German-speaking countries. Niko is the founder and CEO of the digital media house Binifico as well as a sought-after speaker on Bitcoin, monetary policy and monetary history.
www.nikolausjilch.com
www.binifico.com
www.wasbitcoinbringt.com
www.fixthemoney.net
YouTube
Instagram
Twitter/X
Linkedin
TikTok
Disclaimer: The views and information expressed in these guest contributions should not be interpreted as financial advice. It is important to note that Coinfinity does not necessarily represent the same positions and views as in the content provided here.
