El Salvador mines have earned 474 Bitcoin from geothermal energy since 2021. The country uses 300 mining machines under Tecapa Volcano for this. The current power plant produces 102 MW, with 1.5 MW used for Bitcoin mining. Thus, El Salvador now holds 5,750 BTC, worth around $354 million. The Bitcoin project faces scrutiny from institutions like the World Bank. President Bukele faced backlash during the market crash of 2022-2023, but he promised to spend one Bitcoin daily.
Bukele was elected on a Bitcoin platform to combat crime. Bitcoin mining’s fossil fuel use raises environmental concerns. Greenpeace and Ripple-backed groups urge a shift from proof of work to proof of stake. Elon Musk bought $1.5 billion in Bitcoin, then backed off due to environmental issues. He would reconsider if over half of Bitcoin mining used renewable energy. Musk has since made a statement about it. There are rumors about Elon Musk using Bitcoin. However, he thinks bitcoin is bad for the environment. His Tesla factory makes toxins that hurt the air. People are suing Tesla for this.
El Salvador’s Bitcoin Mining From Geothermal Power
The geothermal power plant can generate 102 MW of electricity, out of which 1.5 MW is for bitcoin mining. The supervisor of the plant, Daniel Álvarez, revealed to AP News back in 2021 that the National Commission of Rio Lempa does not use up nonrenewable resources, does not waste money on environmental-harmful activities, and even does not depend on oil or natural gas.
Bitcoin mining in El El Salvador mines could be done in a friendly governmental environment if Bukele ët: the country meets only a low range of the electricity market demand or even exceeds it. Half of the public electricity comes from different technologies, such as hydroelectric, geothermal, and coal plants.
Thus, one-fourth of the country’s energy is based on geothermal energy, as a result of twenty volcanoes being mined in El Salvador. The power, the geothermal system listed in the 2021 report, was reused to log 300 computers run. The obtained cloud computers, which can solve the corresponding equations, account for the greater part of energy consumption thus a nationwide governmental plan is made to acquire it from the local miners. To ween off coal, which is quite emissive these days, and join others who are switching to renewable sources, even though someone in the world might heavily depend on coal-fired power plants.
El Salvador Continues to Increase Its Bitcoin Holdings
El Salvador Mines is a newly created nation that has already chosen to use Bitcoin as its legal tender and now the sky is the limit for it as it is moving toward another crypto milestone. The nation has proved its growth by increasing the volume of Bitcoin, and thus to the highest possible level. The latest reports indicated that El Salvador, with five hundred and forty-seven bitcoins that it has mined in the last three years, is the newly launched program of the country.
The reports also outlined very important information for the nation to follow the trend and create its own BTC financial office, which will then make BTC transactions in a way that will keep it still connected to the changes. The report indicated how the office allowed Bitcoin to remain at 5,750 BTCs as one of the nation’s stable assets.
Pioneering the Green Mining Initiative
Even though Salvador is a pioneer in Bitcoin’s electrification through sustainable means, the country is. Cryptocurrency is notoriously famous for its intensive power consumption. Tecapa, the country’s own, is invigorating this process by being a geothermal plant to power the mining. This green venture has certainly paid off for El Salvador mines as the country now possesses 474 Bitcoins which is equivalent to $29 million. The leader of this initiative among presidents of countries is Nayib Bukele, president of El Salvador.
The CPUs that Bukele has distributed, which are approximately 300, are implemented to amplify mining activities. The mining sector uses approximately 1.5 MW of the country’s total energy production which is approximately 102 MW. El Salvador is about to change its perspectives by assuming a greener attitude. The country is stressing that Bitcoin is tapping the long-term pocket for its sustainability.
FAQs
How much power is used for Bitcoin mining in El Salvador?
El Salvador’s geothermal power plant produces 102 MW, with 1.5 MW dedicated to Bitcoin mining operations.
What environmental concerns are associated with El Salvador’s Bitcoin mining?
Critics raise concerns about the environmental impact of Bitcoin mining, urging a shift to more sustainable methods like proof of stake.
How does El Salvador plan to meet its energy needs for Bitcoin mining?
El Salvador aims to use its geothermal and renewable energy resources to power its Bitcoin mining while reducing dependence on coal.
What is the current status of El Salvador’s Bitcoin holdings?
El Salvador currently holds 5,750 BTC, valued at around $354 million, bolstered by both mined and purchased Bitcoin assets.
