Bitcoin mining is set to be big business in El Salvador as the nation wants to use volcanoes to power the required computations. If actualized, the nation could make $750 million every year as estimated. According to recent approximations, the project would also be the most lucrative internal venture the nation ever undertook.
El Salvador is highly regarded by the crypto community for adopting Bitcoin as a legal tender. The cryptocurrency would be used to facilitate businesses of any kind and would serve as the primary medium of exchange. President Nayib Bukele wants to make the best of the situation by maximizing the volcanoes in the country to mine Bitcoins.
The geothermal energy from the volcanoes is estimated to be at about 95 megawatts. George Kikvadze, the founder of Bitfury in the appraisal of the initiative said matter-of-factly that the 95 MW would generate about 3 exhashes. At that rate, 1800 BTC would likely be mined per month amounting to $750 million in one year.
The Economic Importance of Bitcoin Mining in El Salvador
El Salvador is a Central American nation that does not have a high GDP. The major reason for the adoption of Bitcoin as a legal tender in the nation was to ensure that everyone had access to a financial system as traditional entities couldn’t reach a great number of residents.
Bitcoin mining requires a lot of energy and thankfully, nature blessed El Salvador with volcanoes to capitalize on. This would supposedly help the nation generate substantial internal revenue as the World Bank and IMF denied the nation economic assistance after it adopted Bitcoin.
The Latin American nation is acting in contrast to China that outrightly banned crypto-related transactions and Bitcoin mining on the count of environmental unfriendliness.