El Savador president Nayib Bukele took to Twitter on Tuesday with an update about bitcoin. He made a post on mining equipment arriving in branded containers at the energy factory.
Bukele further confirmed that a volcano in his country is powering cryptocurrency. So far, they have successfully produced 0.00599179 BTC (£208).
“We’re still testing and installing. But, this is officially the first Bitcoin mining from the volcano.” He announced on Twitter.
El Salvador was the first country in Latin America to make Bitcoin legal tender. Businesses must now accept it alongside dollars. And, many are already doing so due to its popularity.
But, the project is facing several challenges. They include technical glitches and swings in the price of Bitcoin. Moreover, there are protests from various groups. Their protest is aiming at the new policies on cryptocurrency. Despite setbacks, Bukele says that his policy is still prevalent. He believes most citizens, despite what they may say online or through social media posts.
The government estimates that 2.3m people in El Salvador use Bitcoin. The majority execute through e-chivo wallet or exchange. This accounts for 35% of its entire population and 600k more than existing bank accounts.
The rise among consumers without bank accounts hints at an exciting future. Yet, digital currencies might play prominent roles as alternatives to fiat currency.
El Savador is Using Alternative Mining Energy
Geothermal energy sources are a conscious alternative to traditional power plants. They produce minimal pollution. The use of these methods in Bitcoin mining is essential. They encourage uptake by addressing concerns about crypto’s footprint on our planet. Furthermore, it also provides cheaper rates for residents and businesses alike.
President Bukele instructed geothermal electric company LaGeo to allow miners access volcanic resources. He gave the order after the approval of bitcoin by El Salvador’s congress in June.
El Salvador has close to 20 active volcanoes. Thus, its potential for geothermal energy could be an answer to the hunt for clean power sources. This is necessary due in part because of bitcoin mining.
Bitcoin mining is a vast carbon footprint operation. Mining bitcoins requires an incredible amount of electricity. Mining consumption is higher than in the entire countries of Switzerland and Indonesia.
Bitcoin’s price has today rallied 9.51 per cent and is currently trading at $47,112k.