El Salvador has mined nearly 474 Bitcoins (BTC) since 2021, leveraging geothermal power from the Tecapa volcano, official data revealed on Tuesday. This innovative approach has expanded the government’s BTC portfolio to an impressive nearly $354 million at current prices.
The nation’s “Bitcoin Office,” a formal government entity, reported that the government’s reserves now boast 5,750 bitcoins. The latest additions, totaling 473.5 BTC valued at around $29 million since September 2021, have been generated using a small portion of geothermal energy produced by the Tecapa volcano. This method is promoted as an environmentally friendly way to accumulate bitcoin, a cryptocurrency known for its decentralized nature, unregulated by any central bank.
President Nayib Bukele, a fervent Bitcoin advocate who secured reelection earlier this year, has overseen the installation of 300 processors dedicated to mining BTC using volcanic energy. Of the 102 megawatts (MW) generated by the state-owned geothermal power plant, 1.5 MW are allocated for cryptocurrency mining. This process, essential for creating and securing cryptocurrencies like BTC, requires substantial energy for computing and cooling data centers, which solve complex mathematical equations.
Globally, cryptocurrency miners have faced increased scrutiny for their significant energy consumption and the resulting impact on power grids and carbon emissions. El Salvador’s volcano-powered mining initiative, however, presents a more sustainable alternative amid these concerns.
Bitcoin Adoption Sparks Global Debate in El Salvador
In 2021, El Salvador became the first country to adopt BTC as legal tender, alongside the U.S. dollar, which has been in use for two decades. This move attracted considerable criticism, including from the International Monetary Fund (IMF), due to the inherent volatility of BTC.
Despite the criticisms, El Salvador continues to push forward with its bitcoin strategy. The government BTC Office noted that cryptocurrency miners from Foundry USA, AntPool, ViaBTC, F2Pool, and Binance Pool collaborated to secure a reward for verifying bitcoin transactions from the power plant over the past three years.
El Salvador’s geothermal bitcoin mining not only highlights the country’s commitment to embracing cryptocurrency but also demonstrates a potential path for sustainable mining practices. As the world grapples with the environmental impact of digital currencies, El Salvador’s approach could serve as a model for balancing technological advancement with ecological responsibility.