El Salvador has emerged as a prominent player in the global cryptocurrency arena with its groundbreaking approach to Bitcoin mining. The country has harnessed the power of geothermal energy derived from the Tecapa volcano, setting itself apart from traditional mining practices. So far, El Salvador has successfully mined an impressive 474 BTC, which is valued at approximately US$29.6 million.
The mining operations in El Salvador are fueled by a geothermal plant situated in the central-eastern region of the country, utilizing the abundant energy provided by the Tecapa volcano. While the plant generates 102 MW of power, a fraction of this capacity, 1.5 MW, is dedicated to cryptocurrency mining. This initiative is spearheaded by President Nayib Bukele, a strong advocate for Bitcoin adoption.
According to reports, “The energy generated by the Tecapa volcano may be relatively small, but it is efficiently utilized to power 300 mining processors installed by President Nayib Bukele, who is known for his favorability towards Bitcoin. Out of the 102 MW produced by the plant, 1.5 MW is exclusively allocated for crypto mining.”
This approach not only offers a sustainable alternative to conventional mining methods, notorious for their excessive electricity consumption and detrimental environmental effects, but also establishes El Salvador as a trailblazer in crypto innovation.
In addition to the BTC mined since 2021, El Salvador has bolstered its Bitcoin reserve through direct purchases, amassing a total of 5,750 BTC, which is currently valued at approximately US$354 million.
Recent reports from El Salvador’s Bitcoin Office have revealed that various cryptocurrency mining entities, including prominent names like Foundry USA, Antpool, ViaBTC, F2Pool, and Binance Pool, collaborated to earn rewards for creating a blockchain that validates Bitcoin transactions verified by the geothermal plant over the past three years.
This geothermal mining model not only represents a remarkable technological advancement but also signifies El Salvador’s commitment to cleaner and more sustainable mining practices, solidifying its status as an innovator in the cryptocurrency field.
Disclaimer: The views and opinions expressed in this article, including those of the author or individuals mentioned, are solely for informational purposes and should not be considered as financial or investment advice. Investing or trading in cryptocurrencies carries the risk of financial loss.
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