El Salvador has made history by becoming the first country in the world to launch a bitcoin mining pool powered by geothermal energy from a volcano. The project, dubbed “Bitcoin Volcano”, aims to harness the abundant and renewable energy source to generate clean and cheap electricity for mining the cryptocurrency.
President Nayib Bukele announced the initiative on Twitter on September 28, 2023, saying that the first 20 megawatts of power had been installed and connected to a new mining facility near the Chaparrastique volcano. He also shared a video showing the steam rising from the pipes and the machines humming inside the building.
??? El Salvador launches the first-ever volcano powered bitcoin mining pool pic.twitter.com/dJ0f5vEwkp
— Crypto Tea (@CryptoTea_) October 5, 2023
Bukele said that the project was part of his vision to make El Salvador a leader in innovation and sustainability, as well as to boost the adoption of bitcoin as legal tender in the country. He added that the Bitcoin Volcano would create jobs, income and development for the local communities, while also reducing the environmental impact of mining.
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According to Bukele, the Bitcoin Volcano has the potential to scale up to 100 megawatts of power in the future, which would make it one of the largest and greenest mining pools in the world. He also said that he was open to partnering with other countries and companies that wanted to join the initiative or replicate it elsewhere.
The Bitcoin Volcano is not the only project that El Salvador is pursuing to leverage its volcanic resources. The country is also working with a Japanese company to develop a geothermal power plant that could generate up to 644 megawatts of electricity, enough to supply about half of the national demand.
El Salvador’s embrace of bitcoin and volcanoes has attracted both praise and criticism from different sectors. Some experts and enthusiasts have applauded the country for its bold and innovative approach to foster financial inclusion and economic growth. Others have warned about the risks and challenges of adopting a volatile and unregulated currency, as well as the possible social and political consequences of Bukele’s authoritarian tendencies.
However, authorities in Venezuela have reportedly confiscated several Bitcoin mining machines and rocket launchers from a prison facility. According to local media, the raid was conducted as part of an operation to dismantle criminal networks operating inside the prisons.
The report claims that the mining equipment and weapons were found in a section of the prison controlled by a notorious gang leader known as “El Niño Guerrero”. The gang allegedly used the mining machines to generate income from the cryptocurrency market, and the rocket launchers to fend off rival gangs and security forces.
The raid was carried out by a special task force composed of members of the National Guard, the Scientific, Penal and Criminal Investigation Corps (CICPC), and the Bolivarian Intelligence Service (SEBIN). The operation also resulted in the arrest of several inmates and prison officials who were allegedly involved in the illicit activities.
The Venezuelan government has been cracking down on Bitcoin mining in recent years, claiming that it poses a threat to the national security and the stability of the country’s power grid. However, many Venezuelans have turned to Bitcoin as a way to cope with the hyperinflation and economic crisis that have plagued the nation.
The discovery of Bitcoin mining machines and rocket launchers in a prison facility is a stark reminder of the complex and dangerous situation that Venezuela is facing, and the challenges that authorities have to deal with in order to restore law and order.
Regardless of the opinions, El Salvador’s experiment with bitcoin and volcanoes is undoubtedly a fascinating case study that will have implications for the future of money, energy and geopolitics. Whether it will succeed or fail remains to be seen, but one thing is certain: it will not go unnoticed.