This Country Keeps 213,519 BTC ($1.6 billion) in the Treasury
December 4, 2019, by Marko Vidrih on ALTCOIN MAGAZINE
Bulgaria is the richest country in the world, at least when it comes to Bitcoin. What happens if so many Bitcoin comes to the open market at the same time?
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 land on the Black Sea on its wallet. That’s about $1.6 billion at the current BTC price. The 213,519 BTC came from a large-scale raid against organized crime in May 2017. The authorities went against corruption and customs fraud on a large scale and found next to a lot of cash and the BTC wallets of the fraudsters.
If the Bulgarian Asservation Chamber is smart, it will keep the Bitcoin even longer, at least until after Halving 2020. By the way, the FBI had a similar case in 2013: at that time, the online drugstore Silkroad was smashed down and about 170,000 BTC confiscated. But the FBI had no patience and apparently did not understand how Bitcoin works: the BTC were sold before the big price spike in December 2013. The price rose in a short time from about $100 to over $1,000.
If Bulgaria sells its BTC, the market crashes
Bulgaria is one of the poorest countries in the European Union. The current total assets are approximately $243 billion (ranked 64 in the world rankings). For comparison: Germany’s total assets are 14,660 billion dollars (4th place in the world rankings). If the Bitcoin price rises to $1 million, Bulgaria’s total assets almost double. However, if Bulgaria wants to sell all its Bitcoins at once, it will trigger a huge drop in BTC price. Since the BTC price is composed of supply and demand, in this case, an extreme oversupply would prevail, which clearly exceeds the demand. The consequence is logically a dump.
Bitcoin for criminal purposes? A bad idea.
Bitcoin is often associated with crime, cyber-attacks and drug trafficking. However, BTC is very poorly suited for these purposes because all transactions are stored publicly and traceable forever in the blockchain. You can theoretically understand any suspicious transaction and also instruct Exchanges to not trade BTC from the relevant address. So you have a hard life as a criminal when you use Bitcoin.
Author: Marko Vidrih
