Moctar BouraimaNestled in the majestic Himalayan mountains lies a country that does not fit into the shackles of capitalist modernity: Bhutan. It is a small, landlocked kingdom known for its unique approach to the idea of happiness and economic development. Indeed, Bhutan maintains that it prefers to focus on “gross national happiness” rather than Gross Domestic Product (GDP). It was Bhutan that popularized the concept of “ Gross National Happiness » (GNH) which is a development approach focused on the search for collective and individual happiness rather than material wealth.
However, although the country is famous for its centuries-old Buddhist traditions and spectacular landscapes, it has embarked on a rather unique path of modernization. It's all the more surprising when you know the country for its Buddhist philosophy, far from the desires of the consumerist world.
Bhutan has indeed become - discreetly - a welcoming land for Bitcoin miners, as revealed to us by an investigation carried out by Forbes Magazine. The country today has several mining farms which apparently participate in the economic opening of the country.
So why is a country as unique and preserved as Bhutan embarking on the tumultuous adventure of bitcoin mining? In this article, we will explore the ins and outs of this surprising revolution.
A kingdom attached to the notion of moral well-being…
Bhutan has long preserved its culture and traditions, with a rural way of life and a strong attachment to the Buddhist religion. Indeed, King Jigme Singye Wangchuck, who ruled the country for more than 50 years, played a crucial role in the modernization of Bhutan. In particular, he opened the country to tourism and introduced the concept of "gross national happiness" in 1972. It is an alternative to GDP that takes into account social and environmental well-being. This indicator is strongly inspired by the Buddhist values very present in the country's culture. This was a real snub given to economists because for the first time, a country had decided to prioritize indicators of moral well-being rather than those linked solely to a country's economic indices.
…Which do not prevent the rise of modern technologies
In recent years, Bhutan has seen a notable shift towards the adoption of modern technologies. The internet was introduced in 1999 and the country has since seen rapid growth in connectivity. The government has also invested in education and training in the areas of information and communication technologies (ICT).
Thus, the country has technological startups and has a relatively developed IT landscape.
Bitcoin mining: a new source of income
However, one of the most striking manifestations of Bhutan’s modernization is the rise of Bitcoin mining. Although this may seem improbable at first glance, you should know that the country is particularly blessed with good conditions for mining. The country, thanks to its cool climate and cheap hydropower, naturally attracts Bitcoin miners. In fact, the cost of electricity of approximately $0,03 per Kwh is one of the least expensive in the world.
Bitcoin mining is an energy-intensive process, often powered by polluting energy sources like coal. Bhutan, with its clean and affordable energy, offers an attractive alternative for environmentally conscious Bitcoin miners.
The Asian country is home to rushing rivers flowing down snow-capped mountains. This hydrographic network offers a hydroelectric potential of more than 30 MW, of which only a fraction is currently exploited. Moreover, the Bhutanese government has actively invested in the construction of hydroelectric plants, generating surpluses of clean energy both for domestic consumption and export to neighboring countries.
The rise of Bitcoin mining farms in Bhutan therefore stimulates the local economy by creating jobs and attracting foreign investment. However, aware of the potential environmental impacts, the Bhutanese government is putting in place strict regulations to ensure that the exploitation of renewable energy is done in a sustainable manner.
This sometimes controversial activity generates revenue for the government and creates jobs. However, this also raises questions of environmental impact and energy consumption.
Financial impact of mining in Bhutan: Foreign investment and job creation
The influx of foreign investors into the Bitcoin mining sector is a major asset for Bhutan. These investments contribute to GDP growth and the development of local infrastructure. Additionally, Bitcoin mining creates local jobs. Residents participate in the construction and maintenance of the installations, as well as in the management of mining operations.
On the other hand, the development of Bitcoin mining in Bhutan does not only have positive repercussions. The environmental impact of this activity and the volatility of the price of Bitcoin are the subject of controversy. However, if Bhutan can manage these challenges responsibly, Bitcoin mining could well be a new economic boost for this booming country.
Challenges and opportunities
It is evident that Bitcoin mining presents opportunities for Bhutan. The activity could generate income and create jobs. This will undoubtedly contribute to the economic development of the country. Additionally, the adoption of digital technologies could open up new opportunities in various fields, such as education and health. However, to seize these opportunities, Bhutan will have to overcome several challenges.
Indeed, the rise of Bitcoin in Bhutan could have significant social implications. The concentration of economic power in the hands of a few key players can exacerbate existing disparities. In addition, the increased demand for energy for mining could put a strain on local infrastructure and accentuate problems of access to electricity for rural populations.
Some courses of action to consider
Bhutan today finds itself at a fascinating crossroads, seeking to balance its traditions with the technological advancements of the 21st century. To do this, it actively works to maintain its unique cultural identity, while adapting to the demands of an ever-changing world.
For Bitcoin to integrate seamlessly into Bhutanese society, it is crucial to balance potential economic benefits with environmental and social risks.
Here are a number of actions that Bhutan should take:
- In-depth environmental assessment : The Bhutanese government must conduct a comprehensive environmental impact study to determine the long-term implications of Bitcoin mining on the country's natural resources and ecosystems.
- Transparent and accountable regulation : It is necessary that the development of Bitcoin is accompanied by adequate legislation. This will protect the interests of all stakeholders involved, including local populations.
- Promoting inclusion and equity : Initiatives can be put in place to ensure that the economic benefits of Bitcoin are distributed fairly. Thus, marginalized populations will not be excluded from this new digital economy.
- Research and development of sustainable technologies : Bhutan needs to invest in research and development of more energy-efficient Bitcoin mining technologies to minimize its environmental impact.
Apart from these measures, it will also be important to raise public awareness of the benefits and risks of this technology.
Towards a sustainable future
Bhutan finds itself at a pivotal moment in its history. The country must find a way to reconcile its centuries-old traditions with the demands of the modern world. With this in mind, Bitcoin mining can be a tool for economic development. On the other hand, its adoption must be done in a responsible and sustainable manner.
By striking a balance between tradition and innovation, Bhutan can preserve its unique identity while ensuring a prosperous future. The success of this enterprise will depend on the country's capacity to dialogue and cooperate between the different actors in society. This involves the government, citizens and businesses in particular.
Last word
In conclusion, the future of Bitcoin in Bhutan is bright overall. Bhutan could even become a model for other countries in Asia and around the world who are looking for new economic opportunities. However, the success of this new adventure will depend on the government's ability to meet the challenges and put in place policies that promote sustainable and inclusive development.
For this policy to succeed, Bhutan’s commitment to “gross national happiness” must guide its decision-making in this area. In particular, the country must ensure that the rise of Bitcoin does not come at the expense of the well-being of its citizens and its precious environment.
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