geothermal energy

El Salvador President Proposes Volcanic-Powered Bitcoin Mining System

El Salvador President Nayib Bukele revealed his plans to explore geothermal energy from volcanoes to mining the cryptocurrency after the “Bitcoin law” passed as a legal tender in this Central American country.

As Bukele shared on his official Twitter handle, The President said engineers had dug a new well that will produce 95MW of renewable energy from the country’s volcanoes. A full Bitcoin mining ecosystem will be designed around it.

“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, zero-emissions energy from our volcanos. This is going to evolve fast!” Bukele revealed this in the tweet.

“Our engineers just informed me that they dug a new well that will provide approximately 95MW of 100% clean, zero-emissions geothermal energy from our volcanos. Starting to design a full #Bitcoin mining hub around it.”

There has been a lot of concerns as it relates to the energy consumption of Bitcoin in recent times, a move that is fueling a clampdown on mining activities in some major crypto mining hubs in China. The need to shift from dirty energy sources such as coal to renewable options has caught the attention of Tesla CEO, Elon Musk who is no beginning to work with miners in the North American region for a potential shift to cleaner energy options.

El Salvador appears committed to helping grow the ecosystem around digital currency after the Bitcoin law signed into law. Bitcoin is estimated to use as much as 116.7 terawatt-hours of electricity per year, and El Salvador’s geothermal plants produce 644 MW. While the Caribbean nation may not offset the global energy requirement to rank number one in Bitcoin mining, its move into space can be certified as a 100% clean and renewable option.

El Salvador to Build the World's First Bitcoin City, Funded by Bitcoin Bonds

In yet another move to showcase its love for Bitcoin, El Salvador’s President, Nayib Bukele, has unveiled the country’s plans to build the first fully functional Bitcoin city. This project is billed to be funded by a Bitcoin-backed, government-issued bond.

A City Where Everything Works

Speaking at the Bitcoin Week Conference, President Bukele revealed the details of the plans for building up the Bitcoin City that the country targets to boost the awareness of Bitcoin of the citizens and enjoin adoption. Bukele conceived Bitcoin City as a perfect one where everything works.

“In #BitcoinCity we will have digital and technological education. Geothermal energy for the entire city and efficient and sustainable public transport,” he said in a statement.

The major forms of taxes being paid in the country, including income tax, capital gains tax, and property tax, will not be collected from residents of the city who transact using Bitcoin or any digital asset. According to the President, only Value Added Tax will be levied, and 50% of this will be used in paying the municipality’s bonds.

The estimated amount to be pulled from the bonds is $1 billion and will be hosted on the Bitfinex Securities Platform. The duo of Bitfinex and Blockstream will support the El Salvador Bitcoin City project. With these firms and the grand forecast for the project, industries are expected to proliferate in El Salvador in the coming years.

“[The platform] will soon be home to many local and foreign digital assets offerings developing new digital asset regulation for the country! El Salvador, Bitfinex, and Blockstream are making history together,” said Bitfinex CTO Bitfinex Paolo Ardoino.

Blockstream’s chief security officer Samson Mao said at the conference that the chances of sourcing $1 billion from Bitfinex’s ecosystem of investors are very high. Mao also pointed out that the first half of the bond, worth $500 million, will be subjected to a 5-year lock-up period and will significantly impact the growth in the price of BTC.

El Salvador is Trailing the Blaze

Since legalizing Bitcoin as an official legal tender in September, El Salvador has set a very good example of how BTC can be used for the greater good. While the process leading up to the launch of the coin in the country was met with some resistance, according to polls. President Nayib Bukele’s government has pressed on building the first Bitcoin schools from the proceeds earned by HODLing, the premier digital currency.

While many countries are tagged to be planning a similar embrace, El Salvador’s milestones will be the standard to emulate for countries looking to trail a similar path.

El Salvador Buys 21 BTC To Mark Special Day

Central American nation El Salvador purchased 21 Bitcoins (BTC) on December 21, 2021, to mark the 21st day of the 21st year of the 21st century.

In a series of Tweets, El Salvador’s President Nayib Bukele pointed out that the event commensurates with Bitcoin’s total supply of 21 million as well as the country’s land area of 21,000 square kilometres.

The country’s latest investment is worth over $1.02 million based on the price of BTC pegged at $48,916.61 at the time of writing according to CoinMarketCap. At present, El Salvador is HODLing a total of 1,391 BTC worth over $66.9 million. Under President Bukele, El Salvador has a number of ambitious plans some of which are already being manifested.

The country became the pioneer in accepting Bitcoin as its legal tender back in September and following the first investment in 200 BTC at the time, El Salvador became the first country to hold the nascent asset class using sovereign national funds. The country’s ambitious plans are also centred on full-blown Bitcoin mining, using geothermal energy from the nation’s volcanoes.

Despite the fact that the majority of key stakeholders and citizens do not support the President’s approach to the Bitcoin legalization process, his efforts in putting profits from holding Bitcoin is likely to appease more people who will eventually back the Bitcoin initiative. Some of the recorded dividends profits from holding Bitcoin have been invested into the construction of 20 schools as well as the planned establishment of a veterinary hospital.

The country has also planned to build a Bitcoin City by raising a Bond instrument. The city will be a green region in which Bitcoin will feature prominently as both a legal tender and as a theme for a central mall that will be built in the shape of the symbol of the top digital currency.

In all of its strides, El Salvador is setting the pace for other nations looking to adopt or legalize Bitcoin as a legal tender.

El Salvador Scoops 410 BTC as the Coin Slumps to a 5-Month Low

Last week, the digital currency ecosystem slipped to unprecedented lower levels when Bitcoin (BTC) dipped to its lowest level in 5 months to a price below $39,000.

The crypto trading world was sent into a frenzy as many liquidated traders. However, some saw the price slump as a major discount to accumulate and top up their bags.

One of these is El Salvador, whose president, Nayib Bukele, announced the administration had acquired another 410 Bitcoins for just $15 million. By this latest purchase, the country now holds a total of 1,801 BTC, as it continues to rank as one of the most crypto-centric nations in Central and Latin America.

To many, periods of market slumps, aptly called ‘Bear Market’, is a time to dread for most traders. However, for investors who believe in the futuristic potential of Bitcoin as a worthy investment asset, price crashes are often seen as a blessing in disguise. While retail traders are likely to avoid further acquisition during periods of Bitcoin price slumps, corporate investors like MicroStrategy also come off as one of those who takes advantage of price crashes to accumulate more.

El Salvador adopted Bitcoin as a legal tender back in September 2021, and thus far, President Nayib Bukele has stirred the nation’s economy to pay a lot of attention to Bitcoin. Besides utilizing a geothermal energy source for Bitcoin mining and tapping into its rich volcanic energy, the country hopes to build a Bitcoin City that will serve as a model for other countries to learn from.

The continuous accumulation of Bitcoin by El Salvador has drawn criticisms from known economists who believe Bitcoin is in a bubble and that holding the nation’s reserve in it is unwise. Despite this economic antagonism, Bukele seems unrelenting in his course until some of his projections for adopting Bitcoin are met.