About a month has passed since El Salvador declared Bitcoin as legal tender, with Salvadorans skeptical about the measure. President Nayib Bukele did not stop there, but has sought to ensure the stability of the country using the currency by acquiring more bitcoins or ways to mine them. Taking advantage of the volcanic activity in the area, they announced that they would use their energy to mine bitcoins. Said and done.
According the president himself announced on Twitter These days, they are finally getting to mine bitcoins using geothermal energy. At the moment have obtained 0.00483976 bitcoins with this operation, which is equivalent to a value of around 200 euros to change. Of course, it says that they are still “testing and installing” the system.
El Salvador, volcanoes and Bitcoin
That said, you have to put things in context. There really isn’t much of a mystery behind this. The idea to do so is part of the high energy consumption involved in mining bitcoin. Consequently, alternatives are being sought that are more environmentally friendly or cheaper. In the United States, as we have seen recently, they are partnering with nuclear power plants. In El Salvador they are taking advantage of a resource that they have always had: geothermal energy.
The country has been producing for years, getting a quarter of its electricity with geothermal energy. The facilities to get this electricity have already been installed for a long timeWhat the Salvadoran government has now done is simply install a bitcoin mining center next to these facilities to feed it with energy from volcanic activity.
– Nayib Bukele ?? (@nayibbukele) September 28, 2021
Nayib Bukele meets like this Your request that the state power company LaGeo offers “Bitcoin mining facilities with very cheap energy, 100% clean, 100% renewable and 0 emissions from our volcanoes.” For the first time in the country, although not by far in the world. Comfortable Scandinavian Northern European Countries or Iceland have been practicing this for years.
With its pluses and minuses, the Salvadoran government is managing to impose Bitcoin as a national currency. A measure that does not convince citizens due to ignorance about the cryptocurrency as well as its volatility. The crypto market in general didn’t sit well either. A measure that has also not been seen favorably by economic experts, as well as the International Monetary Center, which believes that this “raises a number of macroeconomic, financial and legal issues that require very careful analysis.”
Via | CNBC