Venezuela's Alleged Bitcoin Stash: A Dubious Claim

Speculation has emerged suggesting that the Venezuelan government may be holding a substantial amount of bitcoin, potentially worth over $60 billion. However, this claim appears to be based on speculation and second-hand reports, lacking concrete evidence linking these funds to state-controlled wallets. As someone who has mined bitcoin in Venezuela for years, I am skeptical about the government's ability to accumulate such a large stash of bitcoin, and I will explain why. The allegations surrounding the regime's bitcoin stash are rooted in three main claims: a large gold sale exchanged for bitcoin in 2018, oil revenue priced in bitcoin, and stolen or seized mining equipment. While I acknowledge that Venezuela has received payments for some oil sales in cryptocurrency, and I have personal experience with the regime's theft of mining equipment, I have not seen credible evidence to support the claim that the 2018 gold sale was converted into bitcoin. The mastermind behind the alleged gold sale, Alex Saab, was in US custody from 2020 to 2023, and it is unlikely that he would have been able to control a significant amount of bitcoin during that time. Furthermore, the Venezuelan Central Bank's listed reserves at the time of his release did not include any publicly identified bitcoin disclosures. The proceeds from crypto sales are also unlikely to appear in Venezuela's official reserves due to the regime's history of extreme corruption. The supposed crypto regulator, SUNACRIP, has been embroiled in scandals, including the embezzlement of billions of dollars by high-ranking officials. Any profits from crypto sales would likely be siphoned into the pockets of corrupt regime members. Additionally, the regime has a track record of mismanaging complex operations, including the state-owned oil company, PDVSA. The country's chronic energy shortages and fragile electrical grid also make it challenging to set up large-scale mining operations. In conclusion, while I believe there may be some bitcoin in Venezuela, it is unlikely to be in the hands of the regime.