Monday, June 17, 2024
HomeBTCEl Salvador Adds Nearly 474 Bitcoins to State Holdings Over the Last...

El Salvador Adds Nearly 474 Bitcoins to State Holdings Over the Last Three Years

El Salvador has successfully mined approximately 474 bitcoins using geothermal energy sourced from one of its volcanoes, boosting its state cryptocurrency reserves to an impressive total of 5,750 BTC, valued at $354 million. This initiative, harnessing the natural power of the Tecapa volcano, marks a significant achievement in sustainable cryptocurrency mining.

The project is spearheaded by El Salvador’s government, specifically under the auspices of the newly established “Bitcoin Office.” The mining operation involves major cryptocurrency mining pools like Foundry USA, Ant Pool, ViaBTC, F2Pool, and Binance Pool.

Since 2021, El Salvador has mined 474 bitcoins, using the geothermal power generated by the Tecapa volcano. This renewable energy source not only powers the mining operations but also supports the country’s environmental sustainability goals.

The bitcoin mining began in 2021 and has continued over the last three years, coinciding with the country’s broader efforts to integrate Bitcoin into its financial system.

The mining operations are located at a state-owned power facility near the Tecapa volcano in El Salvador. This facility is equipped with 300 computers dedicated to bitcoin mining and generates a total of 102 megawatts of power, with 1.5 MW allocated specifically to cryptocurrency mining.

El Salvador’s use of volcano-powered bitcoin mining aligns with President Nayib Bukele’s vision of leveraging the country’s renewable energy resources to foster economic growth and technological innovation. Bukele, a staunch advocate of Bitcoin, has positioned the cryptocurrency as a central pillar of his economic strategy following its legalization as tender in 2021.

The geothermal power plant capitalizes on the volcanic activity to generate electricity, which in turn powers the intensive computing processes required for bitcoin mining. These processes involve solving complex mathematical problems to secure and verify transactions on the Bitcoin network.

The initiative reflects El Salvador’s unique approach to addressing the energy demands of cryptocurrency mining by utilizing renewable resources. It also highlights the country’s commitment to integrating innovative technologies into its economy, despite facing international scrutiny and criticism from entities such as the International Monetary Fund. As El Salvador continues to expand its bitcoin holdings, it sets a precedent for other nations considering similar integrations of renewable energy and blockchain technology.

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