dsbatten on Nostr: We are now 2 years in to Bhutan's Bitcoin Strategic Reserve experiment. That means we ...
We are now 2 years in to Bhutan's Bitcoin Strategic Reserve experiment.
That means we now hae some good data on how it has affected the economy.
For context: Bhutan have formed a large Bitcoin Strategic Reserve by using their surplus renewable hydropower to mine Bitcoin.
The IMF warned that nations embracing Bitcoin would destabilize their economy, be less effective at attracting foreign direct investment, and endanger their decarbonizing and environmental initiatives.
What does the data say:
1. Bhutan's Bitcoin Strategic Reserve has directly addressed pressing fiscal needs. "In June 2023, Bhutan allocated $72 million from its holdings to finance a 50% salary increase for civil servants"
2. Bhutan was able to "use Bitcoin reserves to avert a crisis as foreign currency reserves dwindled to $689 million"
3. Prime Minister Tshering Tobgay in an interview said that bitcoin also "supports free healthcare and environmental projects"
4. Tobgay also said their Bitcoin reserves helped in "stabilizing [the nation’s] $3.5 billion economy"
5. Independent analysts have now said that "this model could attract foreign investment, particularly for nations with untapped renewable resources"
Considering how the IMF analysis was not just wrong, but roughly 180° off target, it begs the question, was the IMF's predictions ever based on data?
Or maybe they just possibly had another agenda in predicting the adverse impact of any nation embracing Bitcoin?
That means we now hae some good data on how it has affected the economy.
For context: Bhutan have formed a large Bitcoin Strategic Reserve by using their surplus renewable hydropower to mine Bitcoin.
The IMF warned that nations embracing Bitcoin would destabilize their economy, be less effective at attracting foreign direct investment, and endanger their decarbonizing and environmental initiatives.
What does the data say:
1. Bhutan's Bitcoin Strategic Reserve has directly addressed pressing fiscal needs. "In June 2023, Bhutan allocated $72 million from its holdings to finance a 50% salary increase for civil servants"
2. Bhutan was able to "use Bitcoin reserves to avert a crisis as foreign currency reserves dwindled to $689 million"
3. Prime Minister Tshering Tobgay in an interview said that bitcoin also "supports free healthcare and environmental projects"
4. Tobgay also said their Bitcoin reserves helped in "stabilizing [the nation’s] $3.5 billion economy"
5. Independent analysts have now said that "this model could attract foreign investment, particularly for nations with untapped renewable resources"
Considering how the IMF analysis was not just wrong, but roughly 180° off target, it begs the question, was the IMF's predictions ever based on data?
Or maybe they just possibly had another agenda in predicting the adverse impact of any nation embracing Bitcoin?