Bulgaria’s Bitcoin Sale: A Missed Opportunity for Debt Clearance
In 2018, Bulgaria sold over 213,500 Bitcoin, seized the previous year. Today, that Bitcoin would be worth over $25 billion—more than the country’s $24 billion public debt. This decision has sparked a global debate on whether cryptocurrencies should be considered strategic reserve assets.
The Challenge of Bitcoin as a Reserve Asset
Alex Obchakevich, Founder of Obchakevich Research, points to Bitcoin‘s volatility as a key reason governments hesitate to hold it as a reserve. He recommends diversified portfolios and gradual liquidation to manage risk.
Reassessing Bulgaria’s Choice
Valentin Mihov, co-CEO at Enflux, believes keeping some Bitcoin could have positioned Bulgaria as a leader in the crypto space. At the time, immature custody solutions and unclear regulations influenced the sale.
How Governments Worldwide Approach Bitcoin
- The United States and China hold the most Bitcoin, with over 198,000 and 190,000 respectively.
- Other notable holders include the United Kingdom, Ukraine, and North Korea.
