Over the past three years, El Salvador has accumulated 5,750 BTC, equivalent to a whopping $354 million. Since 2021, the country has successfully mined 474 Bitcoins, worth around $29 million, by harnessing the power of volcanic geothermal energy.
El Salvador: Natural Resources to Bitcoin
In 2021, El Salvador achieved a historic milestone by becoming the first country to embrace Bitcoin as a legal tender. This places Bitcoin as the second currency alongside the United States dollar.
Since then, the government has implemented various policies, including the establishment of a geothermal plant specifically for mining Bitcoin. El Salvador’s Tecapa volcano powers the mining of Bitcoin, with a value of $62,807. This impressive feat is accomplished using 300 mining processors.
According to Reuters, to achieve this significant stride, the country dedicated 1.5 megawatts (MW) of the state-owned power plant’s total production of 102 MW for cryptocurrency mining purposes.
El Salvador’s use of sustainable energy for mining operations sets a positive example in an industry whose energy use remains largely controversial.
Unnwavering in the face of scrutiny
It remains intriguing to see how El Salvador’s Bitcoin mining approach can reshape the broader industry.
However, since the inception of its Bitcoin regime, the El Salvador government has faced significant criticism from global organizations. These include the World Bank, and other rating agencies.
The bear market experienced between 2022 and 2023, the hacking of the country’s Chivo Wallet, further intensified scrutiny, leading many to question the actions of President Nayib Bukele.
Bukele’s recent triumph in the country’s elections is a testament to the support he garnered from the people of El Salvador. This unwavering backing has reinforced his commitment to Bitcoin in general.
The El Salvador Bitcoin success story is currently considered a pace-setter for other Latin American countries like Paraguay. Paraguay has extended talks bordering on Bitcoin legalization to its Parliament according to multiple reports.