For years, Bitcoin has been receiving complaints about its intensive energy requirements and use of complex computer equipment. As such, the BTC mining industry is continuously looking for ways to address the cryptocurrency’s high energy use without sacrificing its generation.
President Nayib Bukele of El Salvador may have one practical consideration for this growing concern: introduce a “rent-a-volcano” program to harness geothermal energy to power Bitcoin mining.
Under the proposal, the government will allow third parties to harness the country’s geothermal resources. If Bukele’s suggestion is approved, El Salvador will become a pioneer in using natural energy to mine the digital asset.
And with 170 volcanoes…⁰A “rent your volcano to mine Bitcoin” program might actually make sense 🤔 https://t.co/BENtEqher1
— Nayib Bukele (@nayibbukele) November 24, 2024
‘Rent A Volcano’ For Bitcoin Mining Makes Sense, Says Bukele
Bitcoin mining is a popular topic in El Salvador, one of the first countries to legitimize Bitcoin as a financial asset. As a pro-crypto leader, President Bukele has always been on the lookout for initiatives and programs that can increase adoption. And for Bukele, harnessing the country’s natural energy resources is a great way to boost crypto mining.
In reply to a post about El Salvador’s natural energy, Bukele stated that renting a volcano to mine Bitcoin makes sense. He added that this kind of approach may push the country to become the first to tap geothermal energy for Bitcoin production.
BTC market cap currently at $1.83 trillion. Chart: TradingView.com
Mining Rigs Powered By Geothermal Energy
El Salvador is one of the leaders in BTC mining, and it has already mined 474 Bitcoins valued at $46 million since 2021. In a post on November 25th, Bukele introduced the concept of a “rent a volcano” BTC mining program inspired by the success of its geothermal mining facilities.
🇸🇻 NAYIB BUKELE IS CONSIDERING A PROGRAM TO RENT VOLCANOES TO MINE #BITCOIN:
‘with 170 volcanoes… it might actually make sense’ 🌋 pic.twitter.com/azSU3o9Dco
— The Bitcoin Conference (@TheBitcoinConf) November 25, 2024
Bukele’s post responded to another Twitter/X user’s post on BTC mining using geothermal energy. The president reacted by saying that with 170 volcanoes, the program to rent out volcanoes is plausible.
Ecologists Hit Plan To Set Up Crypto Cities Near Volcanoes
However, not everyone agrees with Bukele’s plan to power its mining activities with geothermal energy. For some ecologists, the energy generated from geothermal plants may not be enough to power these BTC mining operations.
Ricardo Navarro, a leading ecologist, argued against Bukele’s plan in 2021. He said that the president doesn’t understand the country’s energy situation, and throwing mining into the mix will complicate the country’s energy problems.
In September 2021, Bukele introduced a plan for a volcano-powered mining facility. However, ecologies like Navarro criticized the establishment of a “Bitcoin City” near a volcano, saying that these are impractical. In addition, some critics say that using geothermal is still expensive and not sustainable.
Featured image from Washington Post, chart from TradingView
