El Salvador’s Sustainable Bitcoin Mining Initiative
El Salvador continues to actively develop Bitcoin mining using environmentally friendly geothermal energy. In the country, located near the Tecapa volcano, a mining center operating on a 102 MW power plant has already mined 473 BTC. The power station, owned by the company LaGeo, provides the necessary power for the center, which consumes 1.5 MW of energy.
Environmental Concerns and Government Incentives
The Bitcoin mining project became possible thanks to the use of geothermal energy, which helps reduce dependence on traditional energy sources and minimize the environmental footprint. However, the implementation of this project has faced criticism from environmental organizations. They are concerned that mining will require significant water resources, which could be a problem for El Salvador considering its limited resources.
In response to the criticism and to attract additional investments, the government of El Salvador is offering tax incentives for investors involved in developing infrastructure for Bitcoin mining. The country also continues its policy of regularly buying cryptocurrency: the government has acquired 5,750 Bitcoins, which is currently worth around $356 million.
President Bukele’s Vision
President of El Salvador Nayib Bukele announced the use of geothermal energy for Bitcoin mining back in the summer of 2021. Additionally, the public mempool ONBTC has recently been launched, allowing anyone interested to view the reserves of the first cryptocurrency.
Thus, El Salvador is not only promoting the idea of sustainable use of natural resources for cryptocurrency mining but also striving to strengthen its position in the global crypto industry.
