Nayib Bukele president of El Salvador tweeted on Friday that his country has produced the first ever volcano powered bitcoin. It was described as”volcano” after he posted a video on his Twitter account earlier this week of what appeared to be Bitcoin mining equipment. In the last week, Bukele posted a photo of his country’s successful mining of 0.00599179 Bitcoins, or approximately $280. The president stated that El Salvador is “still testing and installing” the geothermal system, but he also said that the process is now with a fervor.
A mining rig checks transactions with virtual coins with high-performance computers. The rigs use a large amount of energy and have caused environmental issues particularly in areas such as China that rely on emission-intensive energy sources, like coal to produce electricity.
The price of Bitcoin plunged earlier this year when Tesla President Elon Musk stated that his company, in light of environmental issues, will no longer accept Bitcoin to purchase vehicles. In the meantime, Musk said he thinks Bitcoin has a bright future, but it shouldn’t cause harm for the planet. “We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Musk stated. “Tesla will not sell any Bitcoin and we plan to utilize the currency for transactions once mining switches to more sustainable energy sources. We’re also considering other cryptocurrencies that utilize 1 percent of Bitcoin’s energy/transaction.”
Volcano-generated energy is one answer to the environmental problems that come with the production of Bitcoin and other proof of work cryptocurrency. In 2019, the new president will take office. Bukele 40 year old businessman with a high-tech background, has made media attention for his plans to make use of Bitcoin to help transform his poor country.
Bitcoin was declared a legal currency within El Salvador in June, being added to with the U.S. dollar as one of the nation’s currencies. This is a major moment for cryptocurrency that was viewed by many economists as just a temporary trend some years ago.
In the course of its Bitcoin rollout that got off to a rough beginning, El Salvador introduced digital wallets dubbed Chivo meaning “cool.” Bukele’s administration hopes Salvadorans will use Chivo to purchase products and services as well by establishing numerous Bitcoin ATMs across the country. All over the country. The government also gave users of Chivo across the country. Chivo system $30 worth of free Bitcoin. According to the official, the use of Bitcoin to transfer money reduces the cost of sending money and is a more cost-effective method to transfer money.
The sharp rise in Bitcoin’s price on Friday is likely to be due to comments given by U.S. Federal Reserve Chairman Jerome Powell the day before. Powell has calmed the nerves of investors by saying to the public that his central bank doesn’t intend to ban cryptocurrency or take actions similar to those adopted by China.
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