The president of El Salvador, Nayib Bukele, has just instructed LaGeo, a subsidiary of the Lempa River Hydroelectric Executive Commission, to facilitate volcano powered bitcoin mining. He said:
“I’ve just instructed the president of LaGeo (our state-owned geothermal electric company), to put up a plan to offer facilities for Bitcoin mining with very cheap, 100% clean, 100% renewable, 0 emissions energy from our volcanos. This is going to evolve fast!”
This announcement is made on the same day as the passing of an historic law that declares bitcoin is now legal tender in El Salvador, raising speculation on whether other dollarized countries might follow.
Their entry into bitcoin mining is a new angle so far, with the country apparently having abundant renewable geothermal power which in El Salvador accounts for 25% of their total energy production.
Geothermal energy is the heat that comes from the sub-surface of the earth. It is contained in the rocks and fluids beneath the earth’s crust and can be found all the way down to the earth’s hot molten rock, magma.
To produce power from geothermal energy, wells are dug a mile deep into underground reservoirs to access the steam and hot water there, which can then be used to drive turbines connected to electricity generators.
This hot lava is now going to power digital gold as El Salvador goes full bitcoin.