An Academician Says Bitcoin Mining Could Be Bad for El Salvador Economy

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In four days of mining, El Salvador has mined a total of 0.00599179 bitcoins worth 269 USD. This is according to Carlos Martínez, a professor at the University of El Salvador.

The professor explained that if the price of energy were USD 0.13 per kilowatt-hour. And governments used 100 miner 3.74kW WhatsMiner M31S mining rigs, which would cost them $1,168 in costs. “That’s bad business,” Martínez concluded.

The professor’s calculations came from data released by the government on Friday.

Yet, President Bukele said that the government was “still testing and installing” systems.

Bukele stated. “we are still testing and installing. But this is officially the first Bitcoin mining of volcano energy.”

The energy industry insiders claim that the facilities at LaGeo can’t serve a Bitcoin mining center. This is due to its inability to generate enough power with existing resources. And it seems unlikely they will expand for one company’s needs alone.

Martinez agrees that the country cannot meet the electricity demand. So, if the government proportionally allocated enough energy towards mining centers. The rates of electricity will go high.

El Salvador President Bukele Faces Transparency Tests

The media outlet in this passage is opposing Bukele’s rule and BTC adoption policies. Yet, they point out that he has not yet detailed “the cost of equipment acquired for mining projects.” They added that mystery is shrouding the project. So, it is unclear how much energy or financial resources have gone into its construction.

Last week, the Foundation for Economic and Social Development (Fusades)issued a warning. They said that mining Bitcoin at scale in El Salvador would affect the supply and price of energy.

The Director of the Department of Economic Studies at Fusadas is Álvaro Trigueros. He is on record saying that mining in this area could not hope to grow without many precautions. He noted that intense efforts would bring problems for electricity circulation.

Regardless, many international posters reacted with relative enthusiasm on Reddit. They discussed the progress and growth of this company. One person wrote, “just growing pains as they ramp up mining and get some scale.”

Another added that the report was “just clickbait,” as it “takes time to build the hash rate and smooth things out.”

But, Bukele has been proclaiming the success of the Chivo app. He says the app has 3 million users in a country with almost 6.5 million people.

But, left-leaning mainstream media outlets continue to paint the government dark. Moreover, for its Chivo adoption campaign.

La Prensa Gráfica claims that MPs were briefed and trained on using the Chivo app in a parliamentary office. Moreover, ARENA party members claim this is an improper use of government facilities. And breach of ethical code for politicians.