El Salvador has mined a total of 474 bitcoins worth $29 million using volcanic geothermal energy since 2021.
Bitcoin (BTC) was powered by the country’s Tekapa volcano, using 300 mining processors. The country has allocated 1.5 megawatts to cryptocurrency mining out of the 102 megawatts produced by the state-owned power plant, according to Reuters.
In the face of increasing scrutiny over Bitcoin mining’s reliance on electricity and fossil fuels, El Salvador has emerged as a leader in renewable energy mining.
In 2021, El Salvador made history by becoming the first country to adopt Bitcoin as legal tender alongside the US dollar. Since then, the government has adopted several Bitcoin-focused policies, including establishing a geothermal power plant to mine Bitcoin.
El Salvador now owns a total of 5,750 bitcoins worth approximately $354 million.
Since 2021, global organizations such as the World Bank and others have harshly criticized the Central American country for its adoption of Bitcoin.
The 2022 to 2023 bear market has intensified scrutiny, with many questioning President Nayib Bukele’s actions. However, Bukele doubled down on his bet on Bitcoin by announcing that the country would buy one Bitcoin every day.
Bukele easily won El Salvador’s 2024 presidential election with widespread support nationwide.
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Bitcoin mining and its use of fossil fuels have long been controversial topics in the cryptocurrency industry.
Ripple-backed Greenpeace, among others, has called for Bitcoin to be moved from proof-of-work to proof-of-stake. New York Governor Kathy Hochul Occurred The Proof of Work mining ban became law on November 22, 2023, making it the first state in America to ban any cryptocurrency mining activity based on Proof of Work (PoW) for two years.
After purchasing $1.5 billion worth of Bitcoin, Tesla CEO Elon Musk pledged to integrate it as a means of payment for Tesla cars. However, he reversed his decision soon after, citing the negative environmental impact of mining. Musk said he would only reconsider the move when more than 50% of Bitcoin mining runs on renewable energy sources.
Since Musk made his promise, several reports have indicated that more than 60% of Bitcoin mining operations rely on renewable energy sources.
Musk has yet to acknowledge these reports or implement a Bitcoin payment option. Tesla is currently facing a lawsuit for repeatedly violating the Clean Air Act by releasing harmful pollutants from its Fremont factory into surrounding neighborhoods.
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