Bhutan, the Land of the Thunder Dragon, famed for its Gross National Happiness index, is making a stunningly contrarian move. As the world continues to argue about Bitcoin’s energy usage, Bhutan’s not done just yet, using its hydropower to ensure the nation’s leadership in mining the precious digital metal. Is it enlightened leadership and a blueprint for economic prosperity, or a dangerous environmental bet hidden under a posturing of greenwashing? You might think you know the answer. I’m here to tell you, it’s a lot more complicated than that.
Bhutan’s commitment to Gross National Happiness (GNH) is the stuff of legend. It prioritizes well-being over raw economic output. Youth unemployment is slowly rising – from 15.9% in 2023 to a concerning 19% in 2024. Can GNH actually flourish when almost one out of five young adults are having trouble finding their footing within the economy? It’s clear the government understands that something needs to change.
Happiness vs. Hash Rate?
The "unexpected connection" here? Ironically, the very philosophy of GNH requires that Bhutan continues seeking novel solutions to enhance the well-being of its citizens. By utilizing renewable energy, Bitcoin mining offers a unique, actionable solution to today’s economic woes. This approach is closer, at least in spirit, to its stated environmental justice principles.
Let's be blunt: the idea of Bhutan selling "green" Bitcoin to corporations eager to burnish their ESG credentials borders on the absurd. It's like selling "organic" cigarettes. Even if the production process is much cleaner now, Bitcoin continues to feed a system that’s overall highly polluting. This footprint isn’t actually removed it’s just shifted to other jurisdictions. It is very easy for companies to pat themselves on the back for investing in “green” solutions. They fail to address the root cause – Bitcoin’s enormous energy use.
This is a textbook example of moral licensing. It provides companies with moral justification for perpetuating the same harmful practices in another location because they’ve balanced it out by making one “green” purchase. It’s a perilous fantasy, and Bhutan is, naively I hope, playing an active role in spreading it.
Selling "Green" Coins a Moral Hazard?
What about the long-term impact? What happens when the hydropower isn't enough? Will Bhutan be lured to fill the gaps in its renewable energy with cheaper, dirtier alternatives to pursue higher profits? The prospect for anxiety and fear of future loss of compromise is indeed great.
Bhutan's ambitions extend beyond just mining. Their goal is to train their young people in the relevant blockchain and AI technologies. This, I would argue, is the real brilliant stroke of the plan.
Bitcoin mining, quite frankly, is a boom and bust industry. The value of Bitcoin is incredibly volatile, and regulations are always changing. The future economic prosperity of hardrock mining states would be a dangerous bet on one industry. First, investing in human capital is critical. By equipping young Bhutanese with the skills they require to thrive in the digital economy, we are fostering a more sustainable and responsible future.
AI, Blockchain, and Bhutan's Future
Imagine a world where Bhutan is the only country truly mining Bitcoin. Rather, it turns into a dynamic center of blockchain innovation, drawing the world’s top developers and entrepreneurs who build innovative, world-changing applications. This is a dream definitely worth chasing, and it would really change the nature of Bhutan’s economy.
The success of Bhutan's Bitcoin gamble doesn't depend on the price of Bitcoin, but on the skills and ingenuity of its people. If Bhutan can successfully leverage its Bitcoin mining operation to fund education and training in blockchain and AI, it could create a truly sustainable and prosperous future – one that aligns with its values and its commitment to Gross National Happiness.
It's a high-stakes game, no doubt. If Bhutan is strategic, thoughtful and guided by solid ethics, it can take an important step forward. By doubling down on human capital, the country can make its Bitcoin gamble a surprisingly clever bet.
The Counterintuitive Takeaway: The success of Bhutan's Bitcoin gamble doesn't depend on the price of Bitcoin, but on the skills and ingenuity of its people. If Bhutan can successfully leverage its Bitcoin mining operation to fund education and training in blockchain and AI, it could create a truly sustainable and prosperous future – one that aligns with its values and its commitment to Gross National Happiness.
It's a high-stakes game, no doubt. But with careful planning, ethical considerations, and a laser focus on human capital, Bhutan could turn its Bitcoin gamble into a surprisingly smart bet.
The question remains, will they?
