The president of El Salvador posted a video on social media showcasing the development of a project to build a Bitcoin mining facility powered by volcanic energy, which is now underway.
Volcanic Bitcoin Farm in El Salvador becomes Reality
President Nayib Bukele of El Salvador posted a video on Twitter on September 28, 2021, depicting what seems to be a Bitcoin mining facility housed within a geothermal power plant. El Salvador’s first public Bitcoin mining center, according to the video, is powered by energy generated by volcanic heat, which has the benefit of being both inexpensive and environmentally friendly due to its low carbon footprint and lack of environmental pollution.
Starting with an overhead perspective of the installation, the film progresses to a closer look. In the following scene, a truck with the emblem of the Salvadoran government drives past a worker at his place of employment, which is surrounded by a large number of Asics cars. The program comes to a close with an aerial view of the power plant.
Many Bitcoiners, as well as well-known financial professionals like as Dan Held of Kraken, Jay Hao of OKEx, Spencer Schiff, who is the son of Peter Schiff, and pseudonym Hodlnaught, have undoubtedly taken notice of the situation.
It has also been covered by CNBC Television in the following Youtube Release:
Bitcoin is becoming a Digital Gold Mine in El Salvador
Following the video’s release, the Twitter user @constructx replied with a nuanced remark that combined excitement with caution regarding the impact of El Salvador’s growing absorption in Bitcoin on the lives of its citizens:
“My knowledge of El Salvador is limited, but it appears that you are a pleasant ruler to be around. I hope that all of your money will be used to benefit all of your inhabitants, and I do not mean simply the wealthy.”
The president and his government appear to be eager to press through with the legalization and broad adoption of Bitcoin in El Salvador, despite opposition from certain Salvadorans, according to the video released by Buquelet. Six days before the law making Bitcoin legal money takes effect on Sept. 7, 2021, over 300 union activists demonstrated and displayed a “No to Bitcoin” banner in front of Parliament in Ottawa, Ontario.
El Salvador’s adoption of Bitcoin is taking place in a “heated” environment, with both external and internal pressure on the currency from both sides of the border. Opponents of Bitcoin in El Salvador have even gone so far as to burn down a Bitcoin ATM in protest.
Environment Impact of Bitcoin Mining
The computer power necessary to run Bitcoin’s underlying network now consumes roughly as much energy as the whole country of Argentina, rising concerns about the environmental impact of Bitcoin mining.
According to a study conducted by the University of Cambridge, the Bitcoin network consumes more than 121 terawatt-hours (TWh) of power each year, placing it in the top 30 electricity users in the world if it were a sovereign state.
Increasing energy needs have been fueled by the surge in Bitcoin’s price in recent months, which has seen it rise from below $5,000 in March to close to $50,000 today, according to CoinDesk data.
Since the beginning of Bitcoin’s existence, there have been concerns about the cryptocurrency’s energy requirements, with crypto pioneer Hal Finney tweeting on 27 January 2009 about the cryptocurrency’s potential future CO2 emissions – just two weeks after receiving the cryptocurrency’s pseudonymous creator Satoshi Nakamoto’s first ever Bitcoin transaction.
After a significant price increase in 2017, the amount of energy consumed by the Bitcoin network rose to the level of a small nation, bringing it into the limelight for the first time. During the subsequent years, energy consumption decreased in tandem with the market, but the latest all-time high, reached this week, is more than twice as high as it was three and a half years ago.
And this time around, its energy requirements are considerably higher than before, which increses the environmental impact of Bitcoin mining to a new height.
Fortunately, alternatives are being put in place, with some environmentally friendly mining plants currently functioning on a large scale and others in the works.
As a result of the availability of inexpensive hydroelectric and geothermal energy in Iceland and Norway, where nearly 100 percent of all energy output is renewable, Bitcoin miners are able to power their equipment with relative ease. The low temperatures in the nations also contribute to cost savings by allowing the computer systems to cool themselves naturally.
Now with the new volcanic Bitcoin farm in El Salvador, the environmental impact of Bitcoin mining will decrease even further.