El Salvador has successfully mined 474 Bitcoin, valued at $29 million, using the geothermal energy generated by the Tecapa volcano. Accomplished through the use of 300 mining processors, the country has dedicated 1.5 megawatts of power from the state-owned power plant to cryptocurrency mining. This development has positioned El Salvador as a trailblazer in renewable energy mining, countering concerns about the environmental impact of Bitcoin mining.
In a historic move last year, El Salvador became the first country to adopt Bitcoin as legal tender alongside the US dollar. Since then, the government has implemented several Bitcoin-focused policies, including the establishment of a geothermal plant for mining purposes. As a result, El Salvador now possesses a total of 5,750 Bitcoin, worth approximately $354 million.
Despite this groundbreaking progress, El Salvador has faced criticism from global organizations like the World Bank for its adoption of Bitcoin. The bear market experienced between 2022 and 2023 intensified scrutiny, with many questioning President Nayib Bukele’s decisions. However, Bukele remained steadfast in his support for Bitcoin by announcing that the country would purchase one Bitcoin daily.
Bukele’s unwavering commitment to Bitcoin paid off, as he secured a resounding victory in the 2024 El Salvador presidential election, garnering widespread support nationwide.
Bitcoin mining and its reliance on fossil fuels have long been contentious issues within the crypto industry. Various organizations, including Greenpeace with backing from Ripple, have advocated for transitioning Bitcoin from proof-of-work to proof-of-stake. In November 2023, New York Governor Kathy Hochul signed a mining moratorium into law, prohibiting proof-of-work crypto mining activities for two years, making New York the first state in America to do so.
Tesla CEO Elon Musk, who had initially pledged to accept Bitcoin as payment for Tesla vehicles after purchasing $1.5 billion worth of the cryptocurrency, later reversed his decision due to concerns about the negative environmental impact of mining. Musk stated that he would reconsider if over 50% of Bitcoin mining operations relied on renewable energy sources. Numerous reports have since indicated that over 60% of Bitcoin mining indeed utilizes renewable energy, but Musk has yet to acknowledge these reports or reinstate Bitcoin as a payment option for Tesla.
Currently, Tesla is facing a lawsuit for repeated violations of the Clean Air Act, as harmful pollutants from its Fremont factory have been released into nearby neighborhoods.
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