Bulgaria missed $25B debt payoff by selling Bitcoin in 2018
2025-07-16 13:08:48
Main Idea
Bulgaria missed a potential $25 billion payoff by selling seized Bitcoin in 2018, which now exceeds the country's public debt, highlighting the volatility and strategic considerations of holding Bitcoin as a reserve asset.
Key Points
1. Bulgaria seized 213,519 Bitcoin in 2017, worth around $3.5 billion at the time, and sold it soon after; today, that amount would be worth $25.24 billion, exceeding the country's $24 billion public debt.
2. Experts argue that Bitcoin's volatility makes it difficult to use as a stable reserve asset, with risks of sharp value drops overshadowing potential benefits.
3. Strategies like limiting Bitcoin holdings to 10-15%, phased liquidation, and hedging instability were suggested as more prudent approaches.
4. Governments globally hold about 463,000 BTC (2.3% of total supply), with the U.S. and China being the top holders at 198,000 BTC and 190,000 BTC, respectively.
5. Bulgaria's decision to liquidate the seized Bitcoin was influenced by immature custody solutions, regulatory uncertainty, and the EU's tightening policies at the time.
Description
Bulgaria’s 2018 sale of 213,500 BTC — now worth more than its public debt — has reignited debate on whether governments should treat crypto as a reserve asset.
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