El Salvador has made a name for itself in the world of cryptocurrency by taking a pioneering and innovative approach to Bitcoin mining. The country has harnessed the power of geothermal energy from the Tecapa volcano, allowing it to mine an impressive 474 BTC, which is currently valued at approximately US$29.6 million.
The mining process in El Salvador is powered by a geothermal plant located in the central-eastern region of the country, utilizing the energy generated by the Tecapa volcano. While the plant has a capacity of 102 MW, only 1.5 MW are dedicated to cryptocurrency mining. This initiative is spearheaded by the Bitcoin-friendly president of El Salvador, Nayib Bukele.
The report explains that although the energy generated by the Tecapa volcano is relatively small, it is enough to power 300 mining processors installed by President Bukele. El Salvador has allocated 1.5 MW of the plant’s total capacity to crypto mining.
This approach not only provides a sustainable alternative to traditional mining methods, which are often criticized for their high energy consumption and negative environmental impact, but also establishes El Salvador as a leader in innovation within the cryptoasset sector.
In addition to the BTC mined since 2021, El Salvador has also expanded its bitcoin reserves through direct purchases, acquiring a total of 5,750 BTC, which is currently valued at approximately US$354 million.
Recently, the Bitcoin Office of El Salvador revealed that various cryptocurrency mining entities, including Foundry USA, Antpool, ViaBTC, F2Pool, and Binance Pool, have collaborated to obtain rewards for creating a blockchain that verifies Bitcoin transactions validated by the geothermal plant over the past three years.
This geothermal mining model not only represents a technological advancement but also demonstrates a commitment to cleaner and more sustainable mining practices, further solidifying El Salvador’s position as an innovator in the cryptocurrency field.
Disclaimer: The views and opinions expressed in this article, by the author or any individuals mentioned, are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading in cryptocurrencies carries the risk of financial loss.
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