The president of El Salvador Nayib Bukele launched the proposal to “rent a volcano to mine Bitcoin.” This as an alternative to strengthen the economy of the Central American country, which is already generating significant profits with its DCA (Dolar Cost Averaging) strategy, exceeding 80% over the bitcoins (BTC) that the Salvadoran government has purchased since 2021.
The proposal comes as the United States makes preparations to adopt a strategic bitcoin reserve and follow the steps implemented by Bukele in El Salvador. This is because Trump would be after the idea of creating a Advisory Council on digital assets, as the Salvadoran president did in 2022, when he created the Bitcoin Office, an entity that depends on the presidency.
With El Salvador making profits from its strategy and with the president of the United States promising to implement a Bitcoin Strategic Reserve, today more states could be interested in BTC. So in that context, Bukele launches the idea of ”renting a volcano”He says this precisely because of another of the methods used in the country, such as Bitcoin mining with geothermal energy.
According to official data from the Bitcoin Office of El Salvador (ONBTC), since 2021, the country has mined more than 470 bitcoins using the 1.5 MW power of the Tecapa volcanic complex.
Geothermal is a renewable energy source that is obtained from the heat of the Earth’s interior. It can be used for: heating, cooling, supplying drinking water and generating electricity, and as said before in this note, for Bitcoin mining.
Bukele’s proposal was only launched in X and it has not yet become a formal project, but if it is achieved El Salvador would offer a sustainable and effective strategy for the operation of mining farms that require high energy consumption.
With it, The Central American country would have another source of income to boost its economy, and at the same time it would promote the use of renewable energies in a sector frequently criticized for its strong environmental impact.
This novel approach, suggesting that renting a volcano could be a promising investment for mining Bitcoin, is a new twist in the search for ways to strengthen El Salvador’s economy. However, it remains to be seen how this program would be structured and what the legal and operational parameters for its implementation would be.
