El Salvador Expands Bitcoin Holdings With Volcanic Energy Mining
Date
5/16/2024 7:00:06 PM
(MENAFN- The Rio Times) El Salvador has mined 474 units of bitcoin since 2021 by leveraging geothermal energy from volcanoes.
This initiative has generated approximately $29 million in value, as detailed on a government website that monitors the nation's digital assets.
The country's total Bitcoin holdings now amount to 5,750 units, valued at about $380 million. This total reflects an increase of 50 bitcoins since the previous update in March.
El Salvador ranks sixth globally in terms of national Bitcoin reserves, following the United States, China, the United Kingdom, Germany, and Ukraine.
In 2021, El Salvador became the first country to adopt Bitcoin as legal tender.
President Nayib Bukele has been a driving force behind the mining efforts using geothermal power from the Tecapa volcano.
This method of mining emphasizes sustainability and distinguishes El Salvador in the cryptocurrency market.
Bitcoin mining is often criticized for its environmental impact due to its high energy demands, typically met by fossil fuels.
However, El Salvador's approach, using renewable geothermal energy, addresses these environmental concerns.
Currently, 1.5 megawatts out of the 102 megawatts produced nationally are allocated to cryptocurrency mining.
While the government is positive about the future of digital currencies, their adoption among Salvadorans has been slow.
Many residents find Bitcoin too complex, unreliable, and volatile, preferring to continue using the U.S. dollar, which is also legal tender.
El Salvador's strategy of using geothermal energy for Bitcoi mining not only enhances its economic profile but also positions it as a pioneer in environmentally conscious cryptocurrency operations.
This approach could serve as a model for combining natural resources with financial technology in a sustainable manner.
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