El Salvador continues to deliver news in the field of pioneering cryptocurrency, while President Nayib Bukele expresses his ideas through social networks. One of the most recent is to work on a project that allows Bitcoin mining to be powered by energy from volcanoes. In this way, it dispels the doubts that the environmentalists of the Central American nation could have.
The attacks against mining activity are mainly focused on the fact that energy consumption produces “alarming” carbon emissions. Despite the fact that it is a statement that does not correspond to verifiable data, it has penetrated in some sectors. Precisely, those who most attack digital mining are those who are most likely to be damaged by the rebound in cryptocurrencies.
Precisely, avoiding this controversy before it is generated, the Salvadoran president announced the geothermal energy project. It should be taken into account that El Salvador is one of the smallest countries on the continent and its power generating capacity is low compared to its neighbors. However, the number of active volcanoes (23) gives it an enviable expansion capacity.
Geothermal Powered Bitcoin Mining Industry
The fact that Bitcoin mining, which requires so much energy, is powered by fully renewable sources, is more than positive news. In that sense, Bukele wrote on Twitter that he had instructed the president of the electric company to work on the project. “Cheap energy, 100% clean, 100% renewable and zero emission of gases,” he wrote. In this way, a Bitcoin mining powered by energy without emission of greenhouse gases, aims to become the future of the business.
I’ve just instructed the president of @LaGeoSV (our state-owned geothermal electric company), to put up a plan to offer facilities for #Bitcoin mining with very cheap, 100% clean, 100% renewable, 0 emissions energy from our volcanos 🌋
This is going to evolve fast! 🇸🇻 pic.twitter.com/1316DV4YwT
– Nayib Bukele 🇸🇻 (@nayibbukele) June 9, 2021
On the other hand, with the approval of the Bitcoin Law, by an absolute majority in parliament, the price of the currency rose almost 10%. At the time of writing, the price of the most important of the digital currencies in market capitalization is $ 37,000.
It should be noted that, in the Central American country, there are two geothermal plants, both managed by the State. In this sense, the project proposed by the president consists of the construction of two new plants in San Vicente and Chinameca. Likewise, the 23 active volcanoes have a potential capacity of about 200 megawatts.
However, this last data contrasts with other reports, which estimate that El Salvador’s capacity is 664 MW. Regardless of which of the reports is correct, the truth is that Bitcoin mining will be powered by that type of 100% renewable energy.
The Bitcoin fever
Until now, the requests of Bitcoin mining companies interested in settling in El Salvador have not been made public. However, given how explosive this business is, it is suspected that there is already a long list of firms. They would be awaiting approval to settle in the country.
The Bitcoin fever seems to have infected several Latin American politicians, who have expressed their interest in the cryptocurrency. One aspect to consider is that, being El Salvador such a small country, it causes a great impact on the pioneering cryptocurrency market.
This is the first step, which other nations could emulate. But on the operation of Bitcoin, both in mining and in commerce in El Salvador, the future of its massive adoption could depend.
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