Bulgaria could cancel almost 30% of its debt, thanks to Bitcoin….
Can Bulgaria cancel 30% of its public debt thanks to Bitcoin? Yes, and it could even become a very rich country if the cryptocurrency grows.
The reason is the possession of 213,000 Bitcoins , which the Bulgarian authorities seized from a group of criminals in 2017. According to the South East European Law Enforcement Center (SELC), the group hacked the computers of the Bulgarian Customs Agency and made changes to the system so that partner companies could import goods without paying taxes. A devastating crime, but one that the authorities managed to stop.
Immediately after the crackdown, the seized bitcoin was valued at around $500,000, but now it would be worth closer to $6 billion – today that would be $5.8 billion at $27,300 a BTC. It is not clear how these virtual currencies were seized and what the country intends to do with them, but for the Balkan nation it is a considerable figure.
Let's consider that if BTC returned to the maximum values of 2021, when it reached 54 thousand dollars, Bulgaria would have had 11 billion dollars in its pocket. The Bulgarian public debt is equal to about 22 billion dollars, practically it could have halved it, while now it can reduce it by just under 30%. Jesse Meyers, COO of Onramp Bitcoin and holder of an MBA from Stanford University, has predicted that the price of bitcoin will reach $10 million in the next few decades. Cathie Wood, CEO of Ark Invest, has predicted that bitcoin will reach $1 million by 2030, under a bullish scenario. Similarly, Arthur Hayes, co-founder of BitMex, believes that bitcoin could reach $1 million by 2026. If these predictions are true, Bulgaria would become one of the richest countries in the world…
Not only that: Bulgaria now really has a treasury with which it can secure its banks, all without having to resort to the ESM. Many fear that a crisis in the US banking system could undermine the dollar, leading to its devaluation. Bulgaria is much less afraid of a devaluation boost because, at least, it has an extra reserve in a different currency.
By 2030, if the price of bitcoin reaches $1 million and Bulgaria still holds its stash of 213,000 BTC, its assets could be worth $213 billion. Of course it could also go to zero, but since the BTC cost them zero, or close to it, the loss would be tolerable. With this money he could easily pay off the debt and then could easily invest the remainder in various sectors. However, without flying with dreams, every Bulgarian citizen already has a treasure of around 900 euros per citizen. Who knows if the government will choose to sell or do, as they say in the jargon, HODL and keep them in the hope of growth…
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The article Bulgaria could cancel almost 30% of its debt, thanks to Bitcoin…. comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-bulgaria-potrebbe-cancellare-quasi-il-30-del-suo-debito-grazie-a-bitcoin/ on Tue, 25 Apr 2023 12:23:51 +0000.