El Salvador’s President Proposes ‘Rent-a-Volcano’ Plan to Boost Bitcoin Mining

El Salvador’s President Nayib Bukele has revealed an exciting new plan to boost the country’s Bitcoin mining efforts. The idea came from a recent post on X, where Bukele highlighted that El Salvador has successfully mined 474 Bitcoins, worth around $46 million, using geothermal energy from its volcanoes.

To which, the President proposed a unique idea noting –

“And with 170 volcanoes…A “rent your volcano to mine Bitcoin” program might actually make sense.”

This idea would help attract Bitcoin miners from around the world by offering a cheap and eco-friendly energy source. With 170 active volcanoes, El Salvador has an abundance of geothermal power that could be used for mining. Bukele’s proposal suggests renting out the country’s volcanoes to miners, offering them an opportunity to cut their operational costs while benefiting from a natural energy source.

Energy Minister Takes Action to Support the Plan

Daniel Alvarez, El Salvador’s Director General of Energy, Hydrocarbons, and Mines, responded quickly to the proposal. He announced that his team would begin working on a new geothermal law to support the initiative, showing the government’s eagerness to bring the plan to life.

Also, Max Keiser, a senior Bitcoin advisor to the President, lauded the idea, and noted- “El Salvador’s rent-a-volcano to mine Bitcoin will put it in the lead in the global Bitcoin per capita (BPC) race.”

Bitcoin City In Action

This idea also ties into the country’s ambitious Bitcoin City project, which is set to use geothermal energy from nearby volcanoes. The city will be exempt from all taxes except value-added tax (VAT) and will be a hub for Bitcoin mining, business, and residential life. Plans for the city include commercial areas, restaurants, an airport, and even a port and rail system, making it a fully integrated metropolis.

Notably, to finance the development of the city, El Salvador even introduced a “Volcano Bond,” also called a Bitcoin-backed bond.

• Also Read :
•   Bitcoin Price Dips, $500M Liquidated: Is $100K Still Possible?
• ,

Challenges and Criticism

While the plan has generated excitement, it has also faced criticism from environmentalists. Some argue that geothermal energy may not be enough to support the high energy demand of large-scale Bitcoin mining. However, despite these concerns, foreign companies are showing interest in the country’s volcanic resources.

In June 2023, Tether, a major player in the cryptocurrency world, announced its involvement in a $1 billion investment in Volcano Energy, a company building a 241 MW renewable energy generation park in Metapan.

El Salvador’s Growing Bitcoin Stash: A Market Win

The proposal comes at a time when El Salvador’s Bitcoin holdings are seeing impressive gains. The country currently holds over 6,000 BTC, with unrealized profits of more than $168 million.

Since making Bitcoin legal tender in 2021, El Salvador has been steadily building its Bitcoin reserves, positioning itself as an influential player in the cryptocurrency market.

FAQs