El Salvador, the first and only country that has taken the weird decision to adopt bitcoin as a legal tender, has found a succor to the energy challenge that comes with bitcoin mining.

On Friday, President Nayib Bukele tweeted that El Salvador is delving into volcano-powered bitcoin mining. The move, which is expected to erase the concern about the effect of bitcoin mining on the country’s electricity supply, is the first major step Bukele is taking to calm critical nerves.

His decision to make El Salvador a bitcoin country has been widely criticized, including by the International Monetary Fund (IMF) and World Bank.

The flashy 25-second teaser video the president tweeted on Tuesday, includes shots of a government-branded shipping container full of bitcoin mining rigs, technicians installing and plugging in ASIC miners, as well as sweeping landscape aerials of an energy factory in the thick of a forest, bordering a volcano.

In June, Bukele said that he had instructed state-owned geothermal electric company, LaGeo SA de CV to “put up a plan to offer facilities for #Bitcoin mining with very cheap, 100% clean, 100% renewable, 0 emissions energy from our volcanos.” The video, which has since gone viral with more than 2.3 million views, is captioned simply with “First steps…” and is believed to be a sign that the president is moving to fulfill the promise he made three months ago.

“We’re still testing and installing, but this is officially the first bitcoin mining from the #volcanode,” Bukele tweeted, explaining that the project still has a lot of work.

Bukele explained that Salvadorians are embracing the bitcoin idea with rapid increase. He said that 2.7 million people are already using Chivo, a virtual wallet created to enable fee-free bitcoin transactions.

Other bitcoin miners were quick to support the volcano-powered bitcoin mining. SMSTR founder and CEO, Michael Saylor said the “mining upgrades thermal energy into digital energy that can be exported anywhere in the world and stored without power loss.”

As bitcoin lovers race to contain the concerns hanging around the carbon footprint of bitcoin mining, Volcano-powered energy has been widely touted.

“It’s just geothermal energy,” said bitcoin miner Alejandro de la Torre, who recently made the move from China to Texas. “Iceland has been doing it since the very, very beginning of bitcoin mining.”

Bukele’s delve into volcano-generated energy is the latest boost to the push to use cleaner energy alternatives to ameliorate bitcoin’s carbon footprint. It also sets El Salvador on the path of a new energy-based economic boom, given that the Central American country is home to volcanoes. Geothermal energy accounts for nearly a fourth of its domestic energy production, according to official data.

?A fully renewable, untapped energy resource has been put to work strictly because of bitcoin,” said bitcoin mining engineer Brandon Arvanaghi. “Bitcoin is the greatest accelerant to renewable energy development in history.”

El Salvador has mined 0.00599179 bitcoin, or about $269, with power harnessed from the volcano, amidst growing support by Salvadorians.

In June, El Salvador became the first nation to approve bitcoin as a legal tender, and has been working to contain the changes the decision will bring. Bukele said in June that the country is working on a new law that would grant permanent residency to any individual who invests three BTC into El Salvador’s economy. He added that the government will act as a backstop for entities that aren’t willing to take on the risk of a volatile cryptocurrency, since businesses are mandated to accept it.

The government has been increasing the volume of bitcoin on its balance sheet, buying the dip whenever bitcoin takes a dive. However, the future outcome of the decision remains uncertain, and will make or mar Bukele’s political career.

Companies are established to fix market frictions, not to unveil new technologies. The most catalytic innovations happen at business models, not necessarily at the tech stack. Innovators, spend time evaluating your business model and do not think tech can unlock opportunities which your business models cannot capture.

The biggest innovation in Tesla is the pricing model and that is the reason Wall Street gives it multiples than other car companies. Yes, even if you take all the cars in Tesla and give them to Toyota, without the SaaS-like business model, nothing will change in Toyota.

IBM got about 9,130 patents in 2020 while Apple received 2,791. IBM is worth $128 billion but Apple hits $2.36 trillion. IBM runs an industrial age business which does not benefit from the compounding acceleration of returns which digital aggregation has unleashed in our world, via a near zero marginal cost. Apple, Facebook, Amazon, Google, Microsoft, Alibaba, Tencent, etc are united by one thing: DNA of aggregation in some key products.

So, if you do not have the right model, technology will not change the outcome. The solution is not more tech, but a better business model.

More so I am not sure your economics textbook has been updated with Aggregation Construct and that is why you may need to update.

Comment on LinkedIn Feed

Comment #1: Value creation, delivery and capturing, the trio holds everything on business model.
Now it’s not enough to be making money, but rather how you make it, the latter is what places premium on what you do.

Comment #2: Good thought-provoking piece there. I am in agreement with all that has been said so far except for paragraph 3. IBM ACTUALLY runs an industrial age business that DOES BENEFIT from the compounding acceleration of returns that digital aggregation has unleashed in our world. The issue is more of consumerism (the preoccupation of society with the acquisition of consumer goods). Every year, Apple releases the same product with minute feature change at higher prices, status based class-driven lifestyle product, like a commodity. IBM products have a smaller market audience and an expectation of at minimum 4 to 10 years lifespan before a refresh by the customer can occur. We can’t compare both companies at all, they do not serve the same target market or audience. One is end-user computing, while the other is infrastructure computing. However, the piece is totally thought-provoking and a good read.

My response: IBM makes hardware like Tesla but Tesla runs a better business model. Tesla is the 6th most valued company in America. Do not think the problem with IBM is its market. The challenge is that its business model is bad. Sure, the new guy is updating it. Apple was trapped in the iPhone until it stopped reporting its numbers and upgraded its playbook, unlocking massive opportunities.

Comment #3: Ndubuisi Ekekwe ; correct me if I’m wrong Sir, I’ve noticed that you are more impressed by companies whose business model make bigger guarateed returns than companies whose value creation might not be big on financial returns. Which is a capitalist mindset I’ll say. I think it is time to start seeing business operations from the point of greater societal impact with moderate returns. Apple’s playbook is annoying I’ll say, it runs purely on rich folks insatiable hunger for items of ostentation. I have more respect for Tesla I’ll say!!!!

My Response: :Sir, I’ve noticed that you are more impressed by companies whose business model make bigger guarateed returns than companies whose value creation might not be big on financial returns.” – Tesla makes 500k cars in a year and is valued about $750 billion while Toyota makes 10.5 million and is worth less than $300 billion. Toyota brings a revenue of $275 billion while Tesla is about $31B. Toyota made a profit of $20B while Tesla $721 million.

So, your statement is not correct because across most indicators Toyota generated more $$ but I still liked Tesla. Where Tesla did better is valuation, not because of financials on $$ on business model. Any car sold by Tesla today can be earning revenue till it stops being on the road. Toyota, that is not possible. That makes Tesla a software company!

The Aggregation Construct

Telecom is unarguably a household name in the contemporary global community, meaning literally that even a dummy is expected to be familiar with its existence.

Telecom is the short form of telecommunication. The term is often used in its plural form, telecommunications, because it involves many different technologies.

Telecom is the transmission of signs, signals, messages, writings, sounds and/or images via wire, radio, or optical system, among other electromagnetic systems. It enables communication to take place between two parties that are separated by a certain distance.

Telecommunication occurs when the exchange of information between two or more communication participants involves the use of technology. In other words, it is the apt use of tech effects to initiate communication between individuals situated in different localities..

It is transmitted either electrically over physical media such as cables, or via electromagnetic radiation. Suchlike transmission paths are usually divided into communication channels, which afford the advantages of multiplexing.

It’s noteworthy that there are several modern telecom devices in existence. Telecom devices are those equipment that are being used by end users through telecom networks. Telecom networks could be any such network as mobile, exchange, and dedicated networks, or point to point links.

In the present days’ societies, common examples of telecom devices are computers, fax machines, radio cum television sets, satellites, masts, transmitters, trackers, and cell phones, among others.

This piece was informed by the compelling need for the overall users of the aforementioned devices to acknowledge how best to handle, or stay around, them towards avoiding numerous dangers inherent in their respective uses and functionalities.

It’s worth noting that the continued wrong use cum handling of these devices has caused an untold harm to the human body and the society at large, although their impact on societal wellbeing and growth cannot be overemphasized.

Each of these devices comprises Electromagnetic Field (EMF) that emits Electromagnetic Rays/Radiation (EMR) while they are in use. Many people worldwide are yet to realize they are chronically exposed to something that can deteriorate their health, because EMR is invisible and odourless, and cannot be felt any anyone.

This implies that unless EMR is duly identified and remediated, it can lead to countless health complications as well as premature death. It would shock you to note that millions of individuals have already died owing to their exposure to the said effect that could best be described as a silent killer.

The hidden truth is that EMR exposure, which is reckoned to be the silent enemy endangering the lives of millions of individuals and professionals across the globe, is far worse than cigarette smoke than we could imagine. It is a proven fact and equally verifiable scientifically.

Keep in mind that all health issues would be affected to an extent by exposure to EMR, since it weakens the immune system, stresses the body and damages healthy cells. The higher the frequency of the radiation, the more damage it is likely to cause to the body.

Common diseases caused by EMR are, but not limited to, cancer, chronic fatigue, constant headache, migraine, asthma, cardiovascular diseases, chest pain, insomnia, allergies, electrosensitivity (ES), high blood pressure, brain fag, leukemia, birth defects, miscarriages, and stress.

Others include nausea, multiple sclerosis, rheumatoid arthritis, skin conditions like burning, rashes and pain, as well as tinnitus, and erratic pulse. While the most acute exposures to harmful levels of EMR are immediately realized as burns, the health effects due to chronic or occupational exposure may not manifest for months, or even years.

Safekeeping of the cell phones in one’s trousers’ pocket can harm the person’s reproductive organs owing to the EMR being emitted by the phone, and such experience can make the person sterile if apt and drastic attention isn’t given to the victim.

People aren’t advised to keep any phone in their pockets. It is called a handset, so keep it in your hand. The truth is that EMR can penetrate through any part of the human skin, thus even when the gadget is in our hands, we should ensure that it is kept in a special pack or casing that can reduce the frequency of its radiation. We ought to be informed that the rate of the radiation depends mainly on the type and mechanism of the phone in question.

If we are at home or in the office, we ought to endeavour to keep them away from our body. For those who can engage in a chat for several hours, you really need to cut down the excesses, because you are inadvertently endangering your health. The point is that, you shouldn’t overuse the phone at a time.

The broadcasting/telephone masts mounted amidst residential settlements have caused tremendous harm to the affected residents, unknowingly to them. Wherever a mast is mounted, no one is expected to live anywhere around it. Dwellers are required to live at least a kilometer (1km) away from any mast in use. Even offices are not advised to be located near a mast.

Those working at broadcasting stations should keep off from where the FM/TV transmitter is kept, unless when they want to make some changes on the machine. This warning is invariably boldly inscribed on any transmitter and even in the manual, but several users still end up relegating the instructions to the background.

Similarly, don’t stay very close to your radio/TV set when they are in use. Aside your TV/phone screen that can damage your eyes’ retina, the EMR emitted by these gadgets is far more dangerous to health. The children must be guided in this regard.

Computers such as laptops are not left out. They are called laptops, but that doesn’t imply you are meant to place them directly on your bare skin. Place a tangible material on your laps before putting a laptop on them. The desktop shouldn’t equally have direct contact with the user’s body.

Away from body contact, towards avoiding fire outbreak, endeavour to keep those devices away from flames or flammable zones like gas cookers, filling stations and power lines, because EMR is highly inflammable.

Though these technological facts are inevitable, no one is asking you to henceforth start seeing telecom devices as your enemies; rather, you are only advised to apply reasonable caution while using them.

I expect the total number of African* unicorns to hit at least 15 by the end of 2023; India has minted 28 so far in 2021. Africa* has about 5 unicorns (companies, mainly private, valued at least $1 billion) at the moment:  Interswitch, Andela,  Flutterwave, OPay, and Wave. I expect three to join HI 2022 but in 2023, the thing will ramp up. The African economy transformation is a decades-long opportunity and the redesign will be massive.

Tekedia Capital is working hard to be part of supporting these innovators and builders.