AI vs Bitcoin: Why Laos Probably Won’t Choose Mining

Five months ago, Reuters reported that Laos was considering cutting off electricity supplies to cryptocurrency miners in the first quarter of 2026. The end of that quarter is now approaching - and today an optimistic tweet by Vivek Sen began circulating online, claiming that Laos has announced plans to mine Bitcoin in order to pay down its debt.

Unfortunately, it is hard to take that claim seriously. Not only because no sources are provided, but more importantly because Laos has already had plenty of time to pursue such a strategy. It could have moved in that direction earlier - as Bhutan did. Today, however, that idea no longer seems to fit the spirit of the moment.

About five years ago Laos began to accumulate a significant surplus of electricity from the large hydroelectric plants built across the country. At the time, there were few buyers for that energy. Naturally, cryptocurrency miners stepped in. They are always interested in electricity that no one else wants - because it can often be obtained for free or at very low cost.

The government did sell electricity to them. But during all those years it never developed any real interest in mining itself. People outside the crypto industry often fail to see how important and useful this sector actually is.

Now the surplus electricity has new potential buyers: companies building AI infrastructure. And in the eyes of the state, their activities appear far more meaningful and productive. After all, on one side there is some obscure financial scheme few officials truly understand, while on the other there is a technology whose results are visible in every modern smartphone.

So no - I find it hard to believe that a government which has been selling electricity to miners for five years, yet never considered mining itself, would suddenly decide to start doing so now, when mining has such a powerful competitor for energy as AI.

Then again, good cryptocurrencies have never depended on government support. And they will continue to do just fine without it. We know their real value.