Emily Walker
Bitcoin has faced ongoing criticisms over its significant energy consumption and reliance on advanced computing hardware. The Bitcoin mining sector is actively seeking solutions to mitigate these energy demands while maintaining production levels.
El Salvador’s President, Nayib Bukele, has proposed a potential solution: a “rent-a-volcano” initiative that would leverage geothermal energy for Bitcoin mining.
Under this initiative, the government would permit third parties to utilize the country’s geothermal assets. Should Bukele’s plan be implemented, El Salvador could lead the way in employing renewable energy for digital currency mining.
And with 170 volcanoes…
⁰A “rent your volcano to mine Bitcoin” program might actually make sense— Nayib Bukele (@nayibbukele) November 24, 2024
Bukele Advocates for Volcano Rentals in Bitcoin Mining
Bitcoin mining is a significant discussion point in El Salvador, one of the first nations to accept Bitcoin as a legitimate financial asset. As a staunch supporter of cryptocurrency, President Bukele is keen on initiatives that promote its adoption. He believes using the country’s natural energy can significantly enhance crypto mining efforts.
Reacting to discussions on natural energy, Bukele emphasized that renting a volcano for Bitcoin mining is a sensible approach. He suggested that this method could position El Salvador as the inaugural country to harness geothermal energy for Bitcoin creation.
Geothermal-Powered Mining Operations
El Salvador ranks among the top nations in Bitcoin mining, having mined 474 Bitcoins worth approximately $46 million since 2021. On November 25th, Bukele unveiled the “rent a volcano” BTC mining program, inspired by the success of geothermal mining operations in the country.
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 remarks were in response to another user’s comment about utilizing geothermal energy for Bitcoin mining, highlighting the feasibility of renting volcanoes given the country’s 170 volcanic sites.
Ecologists Challenge the Volcano Mining Proposal
Not everyone supports Bukele’s geothermal energy plan for Bitcoin mining. Some environmentalists argue that the energy produced from geothermal sources might be insufficient to sustain these mining operations.
Leading ecologist Ricardo Navarro criticized Bukele’s proposal in 2021, asserting that the president fails to grasp the nation’s energy dynamics and that incorporating mining will exacerbate existing energy challenges.
Previously, in September 2021, Bukele announced plans for a geothermal-powered mining facility, but critics like Navarro condemned the idea of developing a “Bitcoin City” near volcanic areas, describing it as impractical. Moreover, some opponents claim that geothermal energy remains costly and lacks sustainability.
Featured image from Washington Post, chart from TradingView