El Salvador’s President, Nayib Bukele, recently announced a plan to erect a Bitcoin City at the base of the Cochagua volcano, which occupies a four-kilometer-wide island in the Gulf of Fonseca. The metropolis will be built in a circular shape so as to mimic the appearance of a Bitcoin, and will have its own geothermal power plant, which will support the city, as well as crypto mining. The heat coming from within the Earth can be effectively utilized for generating electricity. Geothermal pools heated by deposits of steam and magma deep below the ground provide the basis for a thriving economy.
Affordable power and a supportive government are paramount for attracting Bitcoin mining operations. The Government of El Salvador is already running a pilot Bitcoin mining project at another geothermal power plant, nearby Tecapa volcano. Roughly 300 computers are doing complex mathematical calculations, verifying transactions for the cryptocurrency. In spite of the fact that it’s a small country, El Salvador accommodates 30 volcanoes, many of which are potentially active. Geothermal energy accounts for about a quarter of El Salvador’s energy. Bitcoin mining will encourage the expansion of renewable energy production. Soon, El Salvador will be able to provide cheaper, renewable power to families.
El Salvador became the first country to adopt Bitcoin as the national currency. Since September 7, it’s been using Bitcoin as a legal tender, alongside the U.S. dollar. People are able to pay their taxes in the digital currency and every economic agent is required to accept the cryptocurrency as payment, provided they have access to the right technology. To motivate citizens to use Bitcoin, the government offered $30 worth of credit for those currently deploying digital wallets. Some people have concerns regarding digital currency, being convinced that it invites criminal activity. The good news is that 3 million Salvadorans have downloaded the Chivo app for Bitcoin transactions.
The Bitcoin City will include residential and commercial areas, entertainment, services, museums. Bars, restaurants, rail, airport, and so on. Most importantly, they’ll all be devoted to Bitcoin. The idea of a Bitcoin City was developed by the BTC company back in 2018. The cryptocurrency provides visitors, consumers, and business partners an environment where they can co-create the future. President Bukele has confidence in Bitcoin’s economic growth, independence, and investment. He strongly believes that the monetary format will remain on an ascending trajectory. Human rights organizations, feminist groups, environmentalists, ronmentalists, not to mention members of the political party seem to disagree. We’ll just have to see what the future holds.
Initially, Bitcoin was created to operate outside the government-controlled financial system. But all that has changed. In El Salvador, the digital currency is deployed as a medium of exchange to promote innovation and tourism. Additionally, it’s easier for people working abroad to send money back home. Bitcoin can unlock the economic potential of the region. The electronic currency remains largely controversial because its value can fluctuate greatly. In the context of huge market news, the financial market is affected, and Bitcoin tends to respond quickly to such changes.