Can Bitcoin Solve Debt Crisis? Bulgaria’s 213K BTC Sale In 2018 Now Equals 79% Of National Debt

Conversations around Bitcoin’s utility in solving the national debt crisis have garnered significant steam following new data from Bulgaria. The value of Bitcoin sold in 2018 has risen to equal 79% of Bulgaria’s national debt, with Binance founder Changpeng Zhao backing BTC’s debt-solving capabilities.

2018 Bitcoin Sale Nearly Offsets Bulgaria’s National Debt

A report has claimed that 213,500 Bitcoins sold by Bulgarian authorities back in 2018 have surged in value to equal a significant chunk of the country’s national debt. Per the report on X, the value of the sold Bitcoin makes up 79% of Bulgaria’s public debt and can offset a portion of the debt if authorities did not sell the assets.

At press time, Bulgaria’s public debt sits at over $30 billion, while the debt-to-GDP ratio is at 24.8%. On the other hand, Bitcoin has set new ATHs of $123K and at current prices, the value of the 213K BTC stands at $25.1 billion.

Since 2018, the value of the asset has surged by over 1,900% in seven years, outperforming several legacy assets along the way. Given the data, Binance founder Changpeng Zhao noted that Bitcoin can solve the public debt crisis faced by several countries.

“Bitcoin could solve most public debt,” said Changpeng Zhao on X

Back in 2017, Bulgarian authorities seized 213,500 BTC in a coordinated raid on the hideouts of cybercriminals. At the time, the value of the assets was around $2 billion and placed Bulgaria as the country with the second-largest Bitcoin holdings.

Countries Push For Strategic Reserves Citing Slew Of Benefits

Given Bitcoin’s appreciating values, several countries are deciding to hold onto confiscated assets rather than offloading them. Led by the US establishing a Strategic Bitcoin Reserve, Ukraine and Pakistan are inching toward their cryptocurrency reserves.

Proponents are pointing to the asset’s streak of protecting against local currency devaluation while eyeing gains from state-backed Bitcoin mining. While the IMF has blocked Pakistan’s plan to mine Bitcoin with cheap electricity, other countries are mulling the option to bolster their crypto holdings.

Despite the perks, there is a downside of volatility and deep price corrections for the top cryptocurrencies. Countries keen on adopting the asset for public debt will have to brave pushback from international lenders like the IMF and the World Bank.