Inside Bhutan’s Secretive Bitcoin Mining: How a Small Nation is Quietly Earning Big Profits with Hydropower

Bitcoin, the world’s most popular cryptocurrency, has been making headlines for its meteoric rise in value over the past few years. But what many people may not know is that the Kingdom of Bhutan, a small landlocked country in South Asia, has been mining Bitcoin quietly for several years. This article will explore how Bhutan has been able to quietly mine bitcoin and what impact this has had on the country.


Bhutan is a small country that is known for its stunning landscapes, commitment to preserving its environment, and the concept of Gross National Happiness. The country is also unique in that it generates most of its electricity from hydropower, which makes it an attractive location for Bitcoin mining.

Bitcoin Mining in Bhutan

Bitcoin mining is a process that involves solving complex mathematical equations to validate transactions on the Bitcoin network. This process requires a lot of computational power, which consumes a significant amount of electricity.

Bhutan’s abundance of hydropower makes it an ideal location for Bitcoin mining. Hydropower is a renewable energy source that is generated by the force of falling water. Bhutan has several hydropower plants, which have a combined capacity of more than 1,600 megawatts. This capacity is more than enough to meet the country’s electricity needs and still has excess power for bitcoin mining.

Bhutan’s Quiet Bitcoin Mining Operation

Bhutan’s bitcoin mining operation is relatively small compared to other countries such as China and the United States. However, what makes Bhutan’s operation unique is its low-key approach. The country has been quietly mining Bitcoin for several years without attracting much attention from the outside world.

Bhutan’s low-key approach to Bitcoin mining is partly due to the country’s desire to preserve its unique culture and environment. The government is also keen on ensuring that the mining operation does not disrupt the country’s hydropower generation, which is a crucial source of revenue for the country.

Impact on Bhutan

Bitcoin mining has had a significant impact on Bhutan’s economy. The country earns revenue from selling excess electricity to neighboring countries, and bitcoin mining has provided another source of revenue. According to reports, bitcoin mining accounts for a significant portion of the country’s exports.

However, bitcoin mining has also raised concerns about its impact on the environment. The mining process consumes a lot of electricity, which can lead to an increase in greenhouse gas emissions. Bhutan’s commitment to preserving its environment means that the government is closely monitoring the mining operation to ensure that it does not have a negative impact on the environment.


The Kingdom of Bhutan’s quiet Bitcoin mining operation is an example of how a small country can leverage its natural resources to generate revenue. Bhutan’s use of renewable energy to mine Bitcoin is also a model for other countries that want to reduce their carbon footprint. However, it is essential to balance the economic benefits of Bitcoin mining with the potential impact on the environment. Bhutan’s approach to Bitcoin mining provides an example of how to achieve this balance.

Frequently Asked Questions about Bitcoin:

What is Bitcoin?

Bitcoin is a digital currency that allows for secure, decentralized transactions without the need for intermediaries like banks or governments. It was created in 2009 by an anonymous person or group using the pseudonym Satoshi Nakamoto.

How is Bitcoin different from the traditional currency?

Bitcoin is decentralized and operates on a peer-to-peer network, which means there is no central authority controlling it. It also has a finite supply, with a total of 21 million Bitcoins that will ever be created. Traditional currency, on the other hand, is centralized and issued by governments, and its supply is not limited.

How do you buy Bitcoin?

You can buy Bitcoin on a cryptocurrency exchange, such as Coinbase or Binance, using traditional currency like US dollars. You can also receive Bitcoin as payment for goods and services or mine it using specialized hardware.

How is Bitcoin secured?

Bitcoin is secured through a process called mining, which involves solving complex mathematical equations to verify transactions on the network. Miners are rewarded with newly created Bitcoins for their work, which incentivizes them to continue securing the network.

What are the risks of investing in Bitcoin?

Bitcoin is a highly volatile asset, and its value can fluctuate rapidly. Additionally, because it is not backed by a government or central authority, there is no safety net in case of a major crash or hack. It’s important to do your own research and only invest what you can afford to lose.

Can Bitcoin be used for illegal activities?

Bitcoin can be used for illegal activities, just like cash or any other form of currency. However, because Bitcoin transactions are recorded on a public ledger, it can be easier for law enforcement to trace illegal activity than with traditional currency. Additionally, many legitimate businesses and individuals use Bitcoin for legal transactions.

How come Bitcoin mining is considered illegal in Pakistan?

Bitcoin mining has been a topic of debate and controversy in many countries around the world, including Pakistan. While the use of Bitcoin and other cryptocurrencies is not illegal in Pakistan, the government has taken a hard stance against Bitcoin mining and has declared it illegal. The reason for this is multifaceted and has to do with a combination of factors, including legal, economic, and social concerns.

One of the main reasons why Bitcoin mining is illegal in Pakistan is due to the country’s strict laws regarding money laundering and terrorism financing. The government is concerned that Bitcoin mining operations could be used to launder money and finance terrorist activities, which is why it has imposed strict regulations on the use of cryptocurrencies in the country. Additionally, Pakistan has also been known to have a problem with electricity theft, and authorities are concerned that Bitcoin mining operations could be contributing to the problem.

Another reason why Bitcoin mining is illegal in Pakistan is that the country’s energy infrastructure is not capable of supporting the high energy demands of Bitcoin mining operations. Pakistan has been facing a severe energy crisis for years, and the government is reluctant to allow Bitcoin mining operations that could further exacerbate the problem.

Furthermore, the government of Pakistan is also concerned about the impact of Bitcoin mining on its currency. The State Bank of Pakistan has warned the public against investing in cryptocurrencies, citing concerns about the volatility of the market and the lack of regulation. The government is also concerned that Bitcoin mining operations could lead to capital flight and damage the country’s already fragile economy.

In conclusion, Bitcoin mining is illegal in Pakistan due to a combination of legal, economic, and social concerns. While some argue that the government’s stance is too strict and stifles innovation, others believe that it is necessary to protect the country from money laundering and terrorism financing. Only time will tell if the government’s position on Bitcoin mining will change, or if it will remain illegal in the country.

Leave a Reply

Your email address will not be published. Required fields are marked *