How Bitcoins will be mined in El Salvador through volcanoes
- El Salvador became the first country to accept Bitcoin as its official currency
- President directed state-owned geothermal energy to make bitcoin mining inexpensive
- As per estimates, the annual energy consumption of Bitcoin is more than 120 terawatt-hours (TWh)
Once again, bitcoin mining is in vogue as El Salvador legalises bitcoin. For its excessive energy consumption, Bitcoin has been derided by many. Despite not having its own currency, El Salvador became the first country to accept Bitcoin as its official currency on September 7, 2021, alongside the US dollar. Also, people who have invested in at least three bitcoins will be eligible for citizenship in El Salvador, according to the president.
In June, El Salvador's president, Nayib Bukele, posted some images and videos of the country's volcano-powered Bitcoin mining operation.
The concept was presented to him during a Twitter Space live audio chat. Bukele directed state-owned geothermal energy firms with putting up plans to make bitcoin mining inexpensive while also keeping it clean and renewable.
A new geothermal energy well in El Salvador is expected to produce 95 MW of pure, zero-emission geothermal energy from its volcanoes, and the country's engineers have begun constructing a bitcoin hub around it.
El Salvador contains roughly 20 volcanoes, 5 of which are potentially active; the heat energy from these volcanoes is utilized to create electricity; geothermal power accounts for around 25% of total electricity generation in the country.
What is Geothermal energy?
There are two Latin words 'geo' and 'therma' that make up "geothermal." The first one refers to "earth" and the second to "heat." As a result, geothermal energy is derived from "earth heat." It's derived from underground steam and water sources. These are typically found near volcanoes when the heat from the volcanoes warms the subterranean water. There are several types of geothermal plants, including Dry Steam, Flash Steam, Binary Cycle, and Enhanced Geothermal Systems.
Bitcoin mining and environment:
In crypto exchanges, bitcoins are exchanged 24 hours a day, seven days a week. Enviro-activists and environmentalists have raised concerns about cryptocurrency's negative impacts and its use of fossil fuels. Due to the fact that more people are using Bitcoin and more mining is being done, the quantity of energy used grows along with the price increase. From the University of Cambridge, it has been estimated that the annual energy consumption of Bitcoin is more than 120 terawatt-hours (TWh).