- Bitcoin mines in El Salvador are being set up following Bitcoin adoption.
- The presence of volcanoes in the country will provide the mines with geothermal energy.
- It has been reported that these BTC mines are capable of mining 20,000 BTC each year.
A revolution was ignited when El Salvador adopted Bitcoin as a legal tender. President Bukele is known for his stance on cryptocurrencies and how he seeks to revolutionize his country using cryptocurrencies. All the citizens who don’t have banking services are now using Bitcoin.
The establishment of Bitcoin miners in El Salvador was viewed internationally as a bold move owing to environmental concerns. But the President had a solution for that as well. The President will be harnessing the power of volcanoes in order to power the Bitcoin mines in El Salvador.
The emergence of Bitcoin mines in El Salvador
Around 95 MegaWatt power will be harnessed from the geothermal plants that would be enough to power the Bitcoin mines in El Salvador. Bitfury founder George Kikvadze applauded this step taken by the President of El Salvador. He stated that in the current atmosphere, 95 MW would be easily able to accommodate around 3 Exahashes.
3 Exahashes can be used to mine Bitcoin at a rate of around 1800 BTC per month. At the current rate, this would mean around $750 million in a year. George Kikvadze claimed this to be the biggest and most lucrative project for the entire country or even Central America.
Mining is a costly process
It is a commonly known fact that mining a cryptocurrency based on the “Proof-of-work” consensus is very costly and requires huge computations. Along with this, it also requires great electrical power to keep the computers running. This is indeed a tiresome process, and without proper funding and energy compensation, it cannot be easily done.
Although El Salvador has taken a revolutionary step, China is doing the opposite by shutting down all the Bitcoin miners in the country. This has led to miners fleeing the country in great numbers.