Bulgaria is the richest country in the world, at least when it comes to Bitcoin. What happens to the country that owns by far the most BTC of all? What happens if so many Bitcoin’s are put on the free market at the same time? And what happens to Bulgaria’s treasury if it is ironclad up to a price of 1 million USD HODLt? We have researched and calculated: All answers about Bulgaria’s BTC treasure can be found in this article.
Bulgaria is the Moby Dick of the Bitcoin Whales
In the great ocean of the Bitcoin Whales, Bulgaria is one of the largest: 213,519 Bitcoins can unite the country at the Black Sea on its wallet. At the current BTC price that is around 1.6 billion dollars. The 213,519 BTCs originate from a large-scale raid against organised crime in May 2017. The authorities took a major stance against corruption and customs fraud and found not only a lot of cash but also the BTC wallets of the fraudsters. However, there is conflicting information as to whether the police really found the private keys or whether they have long since disappeared into the depths of Bulgarian corruption.
If the Bulgarian evidence chamber is clever, it better keep the Bitcoin at least until after the Halving 2020 even longer. There was a similar case at the FBI in 2013, by the way: At that time, the Silkroad online drug-handling centre was smashed and about 170,000 BTC seized. But the FBI had no patience and apparently did not understand how Bitcoin worked: The BTCs were sold before the big price increase in December 2013. The price rose in a short time from about 100 dollars to over 1000 dollars.
If Bulgaria sells its BTC, the market crashes
Bulgaria is one of the poorest countries in the European Union. Its current total assets amount to approximately 243 billion dollars (64th place in the world rankings). For comparison: Germany’s total assets amount to 14,660 billion dollars (4th place in the world rankings). If the Bitcoin price rises to 1 million USD, Bulgaria’s total assets almost double. However, if Bulgaria wants to sell all its Bitcoin at once, this will trigger an enormous drop in prices. Since the BTC price is made up of supply and demand, there would be an extreme oversupply in this case, which clearly exceeds demand. The logical consequence is dumping.
Fun Fact: If the Bitcoin price reached 496 million dollars, Bulgaria would be the richest country in the world in terms of total assets. The USA currently ranks first in the world with 105,990 billion dollars. Especially as we should ask ourselves at a Bitcoin rate of almost USD 500 million: What is really worth more then? The BTC or the USD? The answer is obvious.
Bitcoin for criminal purposes? A bad idea
Bitcoin is often associated with crime, cyber attacks and drug trafficking. However, BTC is very badly suited for these purposes because all transactions are publicly accessible and traceable forever stored in the blockchain. One can theoretically trace any suspicious transaction and also instruct exchanges not to exchange BTC from the corresponding address into fiat currencies or other crypto currencies. So you have a hard life as a criminal if you use Bitcoin. A better alternative is offered by privacy coins such as Monero. Of course, this should not be interpreted as a recommendation for action.