El Salvador has used volcanic geothermal energy to El Salvador mine 474 Bitcoins, with a total value of $29 million, since 2021. This country’s Tecapa volcano used 300 mining machines to create Bitcoin. Reuters says that out of the 102 MW generated by the state-owned power plant, 1.5 MW has been set aside for Bitcoin mining.
As the use of fossil fuels and electricity in Bitcoin mining comes under more and more criticism, El Salvador is leading the way in using sustainable energy. Along with the US currency, El Salvador Mines was the first country to accept Bitcoin as legal tender in 2021. The government has enacted Several Bitcoin-related laws since then, including establishing a geothermal plant for Bitcoin mining.
El Salvador now possesses 5,750 BTC, which includes the 474 BTC that has been mined and is valued at an estimated $354 million. The adoption of Bitcoin by the Central American nation has been the subject of severe criticism from international institutions like the World Bank since 2021. As a result of the 2022–23 market crash, President Nayib Bukele came under increased fire. But Bukele announced the country would purchase one Bitcoin daily, doubling down on his wager.
Earlier this year, Bukele won the presidency with a majority on using Bitcoin as legal money and eliminating crime. Using fossil fuels in Bitcoin mining has been a contentious topic in the cryptocurrency industry for quite some time. Changing Bitcoin’s mining consensus mechanism from proof of work to proof of stake was supported by Ripple-backed Greenpeace and others. In a further move, lawmakers in the United jurisdictions outlawed Bitcoin mining in several jurisdictions.
Elon Musk, CEO of Tesla, invested $1.5 billion in Bitcoin and promised to accept it as payment for Tesla vehicles. On the other hand, he quickly changed his mind, bringing up the detrimental effects of mining on the environment. After more than half of Bitcoin’s mining power comes from renewable sources, Musk would reevaluate this decision. Since Musk made his promise, several reports have shown that renewable energy sources power over 60% of Bitcoin mining.
Either these rumors or the possibility of paying with Bitcoin have gone unacknowledged by Musk. He may pose as an environmentalist, but his Fremont business is often in the news for leaking dangerous chemicals into the surrounding neighborhoods, which has led to multiple lawsuits alleging violations of the Clean Air Act.
El Salvador’s Bitcoin Mining From Geothermal Power
The geothermal power plant can produce 102 MW of electricity, with 1.5 MW for bitcoin mining. The plant’s supervisor, Daniel Álvarez, stated to AP News in 2021 that the Rio Lempa Hydroelectric Executive Commission does not rely on nonrenewable resources, does not spend money on things that harm the environment and does not rely on oil or natural gas.
Bitcoin mining in El Salvador would appear to have a friendly government in Bukele; however, the nation imports around one-fifth to one-quarter of its electricity for affordable electricity. The remaining power comes from various sources, including hydroelectric, geothermal, and fossil fuel-powered plants.
Among those, geothermal provides for neaa quarter of the country’s energy, considering that El Salvador mines has 20 haveive volcanoes. According to a 2021 report, the energy produced from the geothermal turbines sources about 300 computers. To “mine” Bitcoins, computers solve complex mathematical problems, which consume much power; the Salvadoran government is leading the charge for local miners. To switch to renewable energy sources, even though the industry heavily depends on polluting coal-fired power plants.
El Salvador Continues to Increase Its Bitcoin Holdings
El Salvador Mines, a nation that made Bitcoin its official cash, is currently inching toward establishing another crypto milestone. The country has progressively been working towards boosting its own BTC holdings, raising the levels to new highs. Recent reports highlighted El Salvador’s latest program, in which the nation has mined 474 bitcoins in the last three years.
The papers further disclosed vital data, including how the nation has developed its own—Bitcoin office will keep its BTC proceedings in harmony with the changes. The office showed how the nation’s Bitcoin holdings now stand at 5,750 BTCs.
Pioneering the Green Mining Initiative
El Salvador is at the forefront of a green push to produce Bitcoin, despite. Cryptocurrency has a reputation for using a lot of energy. The nation’s own vol, dubbed Tecapa, is fuelling this operation by acting as a geothermal plant to fuel the mining endeavor. This lucrative green strategy has allowed El Salvador to add approximately 474 Bitcoins to its collection, equal to $29 million. Nayib Bukele, the president of El Salvador, has been at the forefront of this endeavor.
Bukele has placed roughly 300 CPUs to bolster the mining proceedings. The mining industry accounts for approximately 1.5 MW of the country’s total energy production of approximately 102 MW. El Salvador is on the verge of altering perspectives by adopting a greener posture. The nation is underlining that Bitcoin is here to stay for the long run.
