As the mother of all cryptocurrency, Bitcoin’s price surged to close to $90,000 soon, countries from El Salvador to Bhutan are seeing huge returns on their Bitcoin investments.
The largest cryptocurrency saw an all-time high $89,940 price on Nov. 12, helping push the total market cap of all cryptos near $3 trillion.
The price spike has massively increased the value of their Bitcoin reserves for Bitcoin-obsessed countries like El Salvador and Bhutan, giving the two nations a tremendous boost to their coffers off the back of growing strength in the digital asset.
El Salvador: $100 Million Added in One Week
El Salvador was the first nation to ever declare Bitcoin as legal tender on Sept. 7th, 2021. The Central American nation has continued to build its positions since then, purchasing 200 BTC initially and then adding incrementally over time.
Currently, on Nov. 12, the value of El Salvador’s Bitcoin reserves amounts to nearly $523 million, blockchain data provider Arkham Intelligence reported.
The latest pump alone added over $100 million in a single week to El Salvador’s treasure chest, which now holds around 5,900 BTC. This enormous inflow of wealth emphasizes the gamble the government is taking on Bitcoin as a potential reserve asset.
Related News: El Salvador Offers Bitcoin Training to Government Workers
Bhutan: A $1 Billion Bitcoin Holdings Portfolio
The early involvement of Bhutan in cryptocurrency seemed to be nothing more than a footnote until April 2023, when it was revealed during bankruptcy proceedings into various crypto firms, including Celsius.
Druk Holding and Investments (DHI), Bhutan’s royal investment arm, purchased BTC and mined BTC from April 2019, when BTC had a price of about $5,000 USD.
As of today, Bhutan has been repaid many times over for this investment strategy: the kingdom now owns some 12,568 BTC, worth collectively over $1.03 billion. This vaults Bhutan into the ranks of some of the more notable Bitcoin holders by volume given its small population and relatively stable economic profile.
But this is not the end of the strategy. Bhutan’s DHI sent over $66 million in Bitcoin to Binance via two transactions in late October, when BTC peaked at $71,000, fueling speculation that the country may be engaging in a strategic sell-off to capture some profits.
Bhutan, through its Bitcoin holdings, also has a small amount of other digital assets ($2 million approx in Ethereum and other cryptocurrencies) to add to its crypto investments.
Impact of Nation Wide Bitcoin Adoption
El Salvador and Bhutan have taken a more unconventional and yet progressive approach to wealth formation and economic strategy. In riding Bitcoin’s trajectory, those countries have both diversified their economic portfolios—and become teaching examples of the next generation of nation-state Bitcoin adoption.
This successful rally lends the responsibility of validating their decisions and could lead to other governments seeking to adopt digital assets as a means to fortify their financial stability or economic expansion.
In the case of El Salvador, the decision to make bitcoin the legal currency was based on a vision of financial inclusion and a desire to escape from the traditional financial system. Conversely, in the case of Bhutan, the plan to sustainably mine Bitcoin by capitalizing on its abundance of renewable energy resources showcases a model of environmentally friendly crypto engagement.
Over time, Bitcoin is likely to appreciate, enriching countries early out of the gate with digital assets and gaining either a sweetened deal on currency volatility or both. The current rally with bitcoin within sight of $90,000 highlights the potential worldwide consequences of crypto for countries ready to ride its boom-and-bust cycle and exhibit longer-term growth.
Even during a week of all-time highs, the combined total of crypto held by Bhutan and El Salvador alone is many billions, signaling that the crypto impact on national economies is becoming more relevant.
