New perspectives of Bitcoin in Bhutan: planned investments and strategies post-halving

Bitcoin in Bhutan: Investments in Increasing Mining Capacity

The investment arm of the Kingdom of Bhutan, Druk Holding and Investments (DHI), along with a Bitcoin mining partner, Bitdeer Technologies, are planning to boost their mining capacity in response to the upcoming Bitcoin halving. Any changes in the cryptocurrency mining reward system could have a significant impact on the future of miners.

Planned Investments in Bhutan

DHI and Bitdeer have announced an ambitious investment plan aimed at increasing Bhutan’s mining capacity sixfold ahead of the upcoming halving. The projected upgrades are set to raise Bhutan’s mining capacity by 500 megawatts by the first half of 2025, contributing to a total mining capacity of 600 megawatts in the kingdom.

Financing the Upgrades

Funding for the introduction of new equipment for the upgrades will come from a $500 million fund that the duo announced last year. Bitdeer’s Chairman, Jihan Wu, has pledged to collaborate with DHI, utilizing Bhutan’s zero-emission energy to support blockchain technology.

Compensatory Strategies for Potential Losses

Preparing for potential losses post Bitcoin halving, some experts suggest various strategies. Acheron Trading’s CEO, Laurent Benayoun, predicts that the reduction in mining rewards will be offset by an increase in network transaction fees. On the other hand, Jimmy Zhao from BNB Chain highlights the potential of Bitcoin non-fungible tokens (NFTs) to enhance miners’ profitability post reward system changes.

Transaction Fees and Miners’ Profitability

According to cryptocurrency asset manager Grayscale’s estimates, by February 2024, Bitcoin had generated over $200 million in transaction fees for miners. The cryptocurrency market’s evolution seems to present the mining industry with new challenges that require flexibility and innovative approaches to sustain profitability in the long run.