"When Bitcoin first launched in 2009, many investors dismissed the currency as a fringe concept and even as a scam. (Charlie Munger, Warren Buffett's former right-hand man at Berkshire Hathaway, memorably called it " stupid and evil.") But the asset has skyrocketed in value in recent years and President Donald Trump labeled the currency "digital gold" after signing an executive order to create a strategic bitcoin reserve last January. Now, reports allege that Venezuela has bought into that "digital gold," holding a "shadow reserve" nearly double that of the U.S."
"Digital publication Project Brazen reported Saturday that Venezuela could hold an estimated $60 billion worth of Bitcoin. Additional intelligence reports allege that ousted Venezuelan President Nicolas Maduro and his associates accrued Bitcoin via three channels: a gold swap overseen by Venezuelan Interior Minister Alex Saab in 2018, oil revenue priced in Bitcoin, and by seizing crypto mining equipment from miners in the country. Sanctions have walled off the country's access to financial markets for years, and experts allege that they may have motivated Venezuelan leaders to invest in cryptocurrencies to sidestep the barrier."
"Bitcointreasuries.net puts Venezuela's holdings at 240 bitcoin, worth nearly $22 million. The website sourced the data from a 2022 Forbes article that cited research from a blockchain analytics firm. The total is a far cry from the estimated U.S. holdings of 328,372, currently worth $30 billion, though the claim positions Venezuela's holdings at nearly double the U.S. and one of the biggest holders of bitcoin globally. The claims of Venezuela's shadow Bitcoin holdings have predictably garnered skeptics, including digital asset financial services company Ledn Co-founder Mauricio di Bartolemo, who grew up in Venezuela and whose family has mined crypto there since 2014."
Bitcoin launched in 2009 and faced early skepticism before sharply increasing in value. President Donald Trump called Bitcoin "digital gold" and signed an executive order to create a strategic bitcoin reserve. Some estimates put Venezuelan Bitcoin holdings at about $60 billion acquired through a 2018 gold swap, oil revenue priced in Bitcoin, and seized crypto mining equipment. Bitcointreasuries.net and blockchain trackers report much smaller Venezuelan balances, while U.S. holdings are far larger. Longstanding sanctions limited Venezuela's access to financial markets and may have incentivized interest in cryptocurrencies. Analysts and insiders express skepticism about the larger estimates.
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