El Salvador Starts Mining Bitcoin Using Geothermal Energy From Volcanoes

El Salvador is making rapid progress in the cryptocurrency industry, having officially mined the first Bitcoin (BTC) using volcanic energy. Not only is this a historic development in its own right, but it is hot on the heels of the country making history by being the first-ever nation to make Bitcoin legal tender.

President Nayib Bukele announced the achievement via Twitter, which included an image of the mined Bitcoin while mentioning that additional testing and installation are still continuing as of this time. He has since referred to the project as &lsquoVolcanode&rsquo.

A new way to mine Bitcoin

President Bukele had stated this past June that he had indeed instructed LaGeo to permit Bitcoin miners to access the nation&39s volcanic sources of energy. So far, the plan to utilize geothermal energy is going well. El Salvador&rsquos leader made it known that in order to mine Bitcoin, the mining operations must be extremely inexpensive, completely clean, renewable, and have no emissions whatsoever.

Furthermore, volcanic energy brings in clean mining for a digital asset that has been plagued by unfavorable press attributable to its carbon footprint. Notably, Bitcoin detractors have used the asset&39s environmental effect as justification for a total prohibition. It is a well-known fact that Bitcoin needs a significant amount of energy to be mined, which in certain circumstances exceeds the usage of several nations.

Mining firms are thus actively searching for renewable energy sources to power their assets, which is most likely the best course of action that can be taken right now as Bitcoin mining cannot continue if it consistently damages the environment and ecosystem.

Mixed reactions continue

It is worth mentioning that El Salvador&39s Bitcoin-oriented approach has been received with considerable suspicion, particularly from worldwide financial organizations such as the World Bank and the International Monetary Fund.

Steve Hanke, Professor of Applied Economics at Johns Hopkins University, raised some concerns about El Salvador&39s efforts, claiming that it will certainly have long-lasting ramifications, even going as far as to describe it as &lsquoeconomic incompetence&rsquo. According to Hanke, legalizing BTC may lead to an economic catastrophe.

Despite the criticisms though, the country&39s residents seem to be adopting digital currencies as part of their daily lives, with both Starbucks and Papa John&39s is just a few of the globally recognized chains that have already begun accepting BTC as payment in El Salvador. President Bukele previously stated that just over 2 million citizens are in fact using the government-issued &lsquoChivo&rsquo crypto-wallet.

To encourage adoption, the government had previously also distributed $30 in Bitcoin to each account holder in the nation. Furthermore, El Salvador&39s government may be planning to launch a local cryptocurrency to be used to pay for various services and products.