40% of their GDP? I don't think what is their backup plan when bitcoin enters into bearish and hit the rock bottom. It is good that bitcoin is considered as part of their reserves but it also has to be something stable in value in the event of uncertain scenarios and I don't think bitcoin has yet to reach that status of not being shattered when something goes wrong. The price fluctuates even if someone decides to start rumours and imagine a country losing 50% of its economy because of a rumour.
Since most of the Bitcoin theyve earned through mining is being held for the long term, I dont think its a big issue. Theyve been in the game for years and have already experienced the bear markets before. Now that the market is more stable, with large institutional investments coming in, the risk is much lower than it used to be.
They have been mining bitcoin since 2019 which means they are aware of the volatility and risks of bitcoin, they know what they are doing.
In addition, they are one of the countries with the cheapest electricity prices in the world, Bhutan's electricity price is only 0.017USD0kWh, much cheaper than other countries. Meanwhile, according to experts, the amount of electricity needed to mine 1BTC on average would be around 600,000kWh, meaning it would cost them just a little over $10k to mine 1 bitcoin. Adding other costs, it doesn't even cost them $20,000 to own 1BTC. Even if the price of bitcoin drops 50%, they still make a significant profit.
No matter what happens, you have to admire their move. Betting 40% of their GDP on Bitcoin shows full confidence, something most countries still hesitate to do even today.
Don't compare other countries with Bhutan because as we know, they have abundant and cheap energy resources that no other country has.
