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Question #455

How does Bhutan's decision to use 10,000 BTC for a city project shape ideas about Bitcoin as a country reserve?

Category: General
It confirms that Bitcoin will replace traditional currencies and become the legal medium of exchange for that country
It suggests Bhutan will begin selling national treasures to fund Bitcoin reserves, indicating financial desperation of diversification
Using 10,000 BTC for sovereign development shows Bitcoin’s acceptance as legitimate reserve asset and diversifies national treasury holdings
It highlights that Bitcoin is unregulated digital currency, and sovereign investments in it pose inflation and security risks

Why is this the correct answer?

This is correct because when a country allocates Bitcoin into its budget or reserve, it signals confidence in the asset’s long-term value. Beginners will see how such sovereign actions lend credibility to Bitcoin as a store of value and portfolio diversifier, similar to gold or foreign currency reserves.

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