New strategy for volcanic mining, with the President speaking out personally
Recently, El Salvador's President Nayib Bukele proposed a bold idea on social media X: to lease the country's volcanoes to Bitcoin miners. In a post on November 25, he stated that miners could utilize the geothermal energy generated by these natural wonders for sustainable Bitcoin mining activities.
This inspiration came from a post highlighting El Salvador's successful use of geothermal energy. The country has mined 474 Bitcoins using geothermal energy, valued at approximately $46 million (around NT$1.4 billion). Bukele pointed out that El Salvador has 170 volcanoes, providing a massive energy source to attract miners globally who want to reduce costs. He stated: 'With 170 volcanoes... a plan to 'rent volcanoes for you to mine Bitcoin' might really make sense.'
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Source: X El Salvador President Nayib Bukele recently proposed the 'rent volcanoes for you to mine Bitcoin' plan on X.
The government is actively promoting it, and experts praise the innovation
In response to the President's proposal, Daniel Alvarez, Director of the El Salvador Energy, Hydrocarbons, and Mining Bureau, quickly acknowledged it. He confirmed that the team would begin preparing a new geothermal energy law to facilitate the implementation of this plan. Meanwhile, the President's senior Bitcoin advisor, Max Keiser, praised the idea, emphasizing that it would put El Salvador ahead in the global per capita Bitcoin (BPC) race.
He stated: 'El Salvador's volcanic mining leases will put it ahead in the global per capita Bitcoin race.'
El Salvador is known as the 'Land of Volcanoes' in the Americas, with rich geothermal energy resources. Currently, geothermal energy accounts for 25% of the country's total electricity, mainly due to active volcanic activity. The national geothermal company LaGeo operates two large facilities that harness volcanic heat to generate significant energy for households and industries while reducing dependence on fossil fuels.
Bitcoin investment profits, national strategy showing results
This innovative plan comes as El Salvador's Bitcoin holdings have realized significant unrealized gains amid a surge in the overall cryptocurrency market. According to NayibTracker data, the country holds 6,172 Bitcoins, with unrealized profits exceeding $162 million (approximately NT$5.26 billion).
Source: NayibTracker El Salvador currently holds 6,172 Bitcoins
However, data from El Salvador's official Bitcoin office shows that the holdings are slightly lower, at 5,949.77 Bitcoins, valued at approximately $574 million (about NT$18.6 billion) at current prices.
Source: Bitcoin Office El Salvador Bitcoin Reserves
El Salvador began accumulating Bitcoin in 2021, the same year it was announced as legal tender. Despite continuous criticism and warnings from financial institutions like the International Monetary Fund (IMF) regarding its Bitcoin adoption, the country has steadfastly pushed forward with this strategy. President Bukele proudly stated, 'I said it a long time ago.'
Innovation and sustainability go hand in hand, leading global new trends
El Salvador's initiative to use geothermal energy for Bitcoin mining sets an example for other countries with volcanic activity, demonstrating how to balance environmental sustainability and digital innovation. This plan not only helps drive the country's economic development but also enhances its position in the global cryptocurrency market.
While this initiative has received widespread praise, it has also raised some concerns. However, using geothermal energy for mining undoubtedly provides a cleaner alternative to traditional energy sources. As El Salvador actively promotes this innovative plan, more countries may follow suit in the future, utilizing natural resources to fund future technological developments and secure a place in the global cryptocurrency market.
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'El Salvador President proposes a crazy plan? 170 volcanoes nationwide, rent them for Bitcoin mining!' This article was first published in 'Crypto City'
