El Salvador mines 474 Bitcoin using geothermal volcanic energy

As a seasoned crypto investor with a strong focus on sustainability and environmental impact, I find El Salvador’s pioneering efforts in renewable energy Bitcoin mining truly commendable. The country’s strategic use of geothermal energy to mine Bitcoin is a game-changer in the industry, as it aligns well with my investment values and reduces the carbon footprint associated with traditional Bitcoin mining.

Since 2021, El Salvador has extracted a total of 474 Bitcoins, equivalent to approximately $29 million, by mining the digital currency utilizing the renewable geothermal energy from its volcanoes.

Bitcoins extracted in the country were produced by its Tecapa volcano with 300 mining processors. The nation has set aside 1.5 MW of the 102 MW generated by its state-owned power plant for cryptocurrency mining, according to Reuters’ reports.

Amid growing concerns about Bitcoin mining’s heavy electricity and fossil fuel usage, El Salvador stands out as a trailblazer in the adoption of renewable energy sources for cryptocurrency mining.

In 2021, El Salvador broke new ground by officially recognizing Bitcoin together with the U.S. dollar as its legal tender. Subsequently, the administration has implemented various Bitcoin-centric strategies, including setting up a geothermal power station for Bitcoin mining.

Currently, El Salvador possesses a Bitcoin haul amounting to 5,750 coins in total. Among them are approximately 474 coins that were mined, valued at around $354 million.

Beginning in 2021, the Central American country has faced intense scrutiny from international institutions like the World Bank over its decision to embrace Bitcoin.

As an analyst, I’ve observed that the intense bear market in 2022-23 raised significant questions about President Nayib Bukele’s decisions. Yet, instead of backing down from his Bitcoin investment, Bukele boldly declared El Salvador’s intention to purchase one Bitcoin per day.

Earlier this year, Bukele secured a decisive victory in the presidential election, largely due to his commitments to make Bitcoin legal tender and tackle crime.

The debate surrounding Bitcoin mining’s reliance on fossil fuels and its impact on the environment within the cryptocurrency sector is a contentious issue of long standing.

As a data analyst, I’ve come across the recommendation from the Ripple-supported Greenpeace coalition, among other advocacy groups, for shifting Bitcoin’s consensus mechanism from proof of work to proof of stake. In addition, U.S. legislators have taken more definitive steps by prohibiting Bitcoin mining in several states.

Following a $1.5 billion Bitcoin purchase, Tesla’s CEO, Elon Musk, announced his intention to enable Bitcoin payments for Tesla vehicles. Yet, not long after, he reneged on this plan, expressing concerns over the environmental harm caused by Bitcoin mining. He stated that his decision might be revisited once more than half of Bitcoin mining relied on renewable energy.

As a researcher delving into the world of Bitcoin mining, I’ve come across an intriguing claim made by Elon Musk stating that more than half of its mining process is fueled by renewable energy. Substantiating this assertion, various reports have surfaced, indicating a reliance of over 60% on green energy sources within the Bitcoin mining community.

As a researcher, I’ve come across reports that Musk has yet to respond to or act upon in regards to enabling Bitcoin payments through his businesses. Surprisingly, given Musk’s public image as an environmental advocate, SpaceX and Tesla continue to deal with lawsuits for allegedly breaching the Clean Air Act. These legal actions claim that their Fremont factory has been emitting pollutants harmful to nearby communities.

2024-05-15 11:24

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