Bulgaria's Government May Have $3 Billions Worth Of Bitcoin
According to an article published by Venturebeat, Bulgaria has now more than $3 billions worth of Bitcoin. During this spring, the government seized about 200,000 Bitcoins as part of a raid against a tax-evasion group. Yes. You read that right: 200,000 Bitcoins.
Back then, total value was about $500 millions, but now it's more than $3 billions.
Interestingly enough, Bulgaria's deficit is just a bit around $600 millions (source). Unloading all that Bitcoin on the market will suddenly make Bulgaria debt free and, even more, probably prosperous (provided communist cleptocracy will not silently hijack all of it).
But this raises a few very interesting questions: are states allowed to participate in the free market, just like anyone else? If Bitcoin could be used as a valid currency in projecting future deficits, it means it's already part of the macro-economy. Can we make state deficit projections taking this into account? Or, even if Bulgaria won't sell it, but it will take a loan in fiat (from, let's say, ECB) could that Bitcoin be used as collateral?
This can certainly make you head spin more than once, if you really think at it.
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they should hodl that and become one of the richest countries in the world in a few years
well, that too, I guess :))
Interesting, BTC as a tool to fix the country debt... not bad gubernamental strategy at all :-)... I would propose it to mine if I were the economy minister, LOL
why would that ever work ? it's not an economic activity producing value.. if they mine it might, but something has to give in order for something to get..
value is entirely subjective, it's a form of agreement. Even if you create an activity (and name it "economic activity") if I don't agree that the byproduct of that activity is worth something, then you won't have any value out of it.
exactly, so in the case under discussion we can't even talk about making that distinction.. it depends on what they make out of their bitcoins not how they put in back on the market.. maybe wrong follow up :D
might just work, you know? :)
Good news for the country.
crazy - do they even know what they've got their hands on / also how long until their legislation will allow them to use it ?
my head just exploded with questions ..
At least that government did not sleep.....
Hi @dragosroua, I found this post very interesting specially this passage:
Bulgaria's economy might not be prosperous again, I am not sure. However, the corrupt politicians is something global and they will definitely get benefited from BTCs.
Steem On!
Exactly. That line is interesting.
well that's an interesting news indeed and i think if bulgarian govt. have such a huge amount of bitcoins then it means governments also taking interest in bitcoin and that good sign for bitcoin and other cryptos as well, thanks for sharing such interesting news with us.
My country's(Pakistan) debt is around 80 billion dollars. .. Incorporating bitcoin into the macro economy may just work... It's a gamble that might pay off. Like it paid off for Bulgaria:)
Im more amazed that they actually seized the Bitcoin in the first place! I mean how do you do that?! It's a little worrying that a government can take control of your Bitcoins.
If it's stolen bitcoin, then it's "dirty money"... but then again, most governments don't have ethics. Being debt free would help millions of their people though.