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Bulgaria Seizes Enough Bitcoin to Pay Off 1/5 of National Debt

Following an undercover bust of an underground crime network, Bulgaria has seized enough Bitcoin to settle a fifth of its national debt.

According to ZeroHedge, the Bulgarian crime enforcement agency and the Southeast European Law Enforcement Center caught 23 Bulgarian criminals and confiscated a total of 213,519 Bitcoins – roughly valued at $3.5 bln.

The syndicate had hacked Bulgarian customs computers, effectively allowing them to import goods without paying the prescribed duties. With the help of a few corrupt officials the group installed viruses on customs computers in order to allow remote access.

SELC said the group included five Bulgarian customs officials, while others had ties to former  Yugoslavian states.

“The organized criminal group consisted of Bulgarian nationals with connections in the former Yugoslav Republic of Macedonia, Greece, Romania, and Serbia” said SELC.

The most intriguing part of this story is the incredible value of Bitcoin and what the Bulgarian government plans to do with it. SELC confirmed that when they seized the wallets, Bitcoin was valued at $2354. It’s now well past the $16k.

“As well, found in the Bitcoin wallets of the main suspects was a total of 213,519 Bitcoins. As reference, the value of one Bitcoin is over $2354. The offenders choose Bitcoin’s way of investing/saving the money because it’s rather difficult to be tracked and followed.”

According to National Debt Clock, Bulgaria’s national debt is in the region of $16 bln – so they could take a big bite out of that if they use their new Bitcoin fortune.

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Senate 2018 Budget Adds $1.5 tln to National Debt: Bitcoin Bubble?

The US Senate Budget Committee has released its 2018 proposed budget for approval in the larger congressional body. The proposal will then be matched with the House proposed budget and worked out for final approval, before being sent to the White House.

The Senate proposal contains provisions that will increase federal spending for this year, adding a jaw-dropping $1.5 tln to the national debt over the next year. Committee members have suggested that the tax cuts would produce economic gains, which would offset the total debt spending.

After 2019, the proposed budget would begin to cut non-defense spending, resulting in substantial budget savings over the next decade. The goal of both the Senate and House proposals is to balance the budget in that time.

Bitcoin unstable?

After recent comments by the Federal Reserve officers regarding trust in the government, the new budget seems more confidence-eroding than building. While the government can continue to print money and increase the national debt (now nearly $19 tln), Bitcoin is held at a fixed supply.

Multiple analysts have pointed out that as long as Bitcoin continues to increase in use cases and liquidity, the price per Bitcoin will inevitably increase. Just as the Federal Reserve has printed money to maintain a debt ratio, Bitcoin’s stability will drive the price up, which should greatly ease investor fears of a bubble.