Key Takeaways:
- El Salvador has mined 474 Bitcoin using geothermal energy from Tecapa volcano, highlighting its innovative approach to combine cryptocurrency mining with renewable energy sources.
- The country adopted Bitcoin as legal tender in 2021, a pioneering move accompanied by significant international criticism and scrutiny, especially during the crypto market downturn.
- President Nayib Bukele reaffirmed his commitment to Bitcoin with a daily purchase strategy, leading to his victory in the 2024 presidential elections despite the ongoing controversy.
Since 2021, El Salvador has successfully mined 474 Bitcoin, valued at $29 million, by harnessing the geothermal energy of its Tecapa volcano.
This initiative uses 300 mining processors, drawing 1.5 megawatts from the 102 MW produced by a state-owned power facility.
JUST IN: 🇸🇻 El Salvador mined nearly 474 #bitcoin worth $29 million using volcano-fueled geothermal power in last three years, Reuters reports. pic.twitter.com/bBACoe9GzM
— Bitcoin Magazine (@BitcoinMagazine) May 15, 2024
This venture is a part of the country’s broader strategy to utilize renewable energy for Bitcoin mining amidst global concerns about the cryptocurrency’s environmental impact.
El Salvador’s engagement with Bitcoin began in 2021 when it became the first nation to adopt it as legal tender, alongside the U.S. dollar.
This groundbreaking move was accompanied by the establishment of a geothermal plant specifically designed for cryptocurrency mining.
El Salvador mined nearly 474 bitcoins, adding to state crypto holding, in last three years https://t.co/8dYn1i4fZc pic.twitter.com/VXAXOLGtis
— Reuters (@Reuters) May 15, 2024
As a result, El Salvador now possesses 5,750 BTC, worth approximately $354 million.
The decision to adopt Bitcoin has not been without controversy. International bodies, including the World Bank, have voiced significant criticism.
The downturn in the cryptocurrency market between 2022 and 2023 further intensified scrutiny, particularly concerning the policies of President Nayib Bukele.
🇸🇻 Since September 2021, El Salvador has mined 474 #bitcoin ($29 million) using geothermal energy generated by the Tecapa volcano.@nayibbukele pic.twitter.com/ajdknHNeHq
— Sjuul | AltCryptoGems (@AltCryptoGems) May 15, 2024
Despite this, Bukele reaffirmed his commitment to Bitcoin, declaring a daily purchase strategy of the cryptocurrency and subsequently securing a resounding victory in the 2024 presidential elections.
This venture in El Salvador highlights a pioneering approach to cryptocurrency mining, utilizing renewable resources to address environmental concerns while bolstering the nation’s economic strategies in the digital currency space.
About The Author
Fleming Airunugba, a seasoned Web3 and crypto content expert, leverages his deep understanding of blockchain technology to bring the latest and most impactful news to the crypto community.
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