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El Salvador Mines $29 Million Worth of Bitcoin Using Geothermal Energy
El Salvador has made headlines by mining 474 Bitcoin, valued at approximately $29 million, using geothermal energy from the Tecapa volcano. This initiative, which utilizes 300 mining processors and 1.5 megawatts of energy, positions El Salvador as a leader in renewable energy mining. The move is significant amid growing concerns about Bitcoin mining’s environmental impact due to its heavy reliance on electricity and fossil fuels.
Despite facing criticism from global organizations like the World Bank, President Nayib Bukele secured a decisive victory in the 2024 presidential election, reflecting widespread national support for the nation’s adoption of Bitcoin. However, the long-term impact of these initiatives remains uncertain amidst ongoing environmental and economic challenges.
Tesla CEO Elon Musk has also been vocal about Bitcoin’s environmental impact, initially announcing plans to accept Bitcoin for Tesla purchases but later reversing this decision due to the negative environmental effects of Bitcoin mining. Musk stated that he would reconsider only if over 50% of Bitcoin mining utilized renewable energy.
El Salvador’s experiment with Bitcoin continues to be a bold and controversial endeavor, reflecting both the potential and risks of integrating cryptocurrency into a national economy. The country’s pioneering use of geothermal energy for Bitcoin mining highlights a significant step towards more sustainable practices in the industry.
