Volcano Energy, a new venture in the cryptocurrency sector, recently announced that it will use only geothermal energy. It will exclusively mine Bitcoin within its dedicated infrastructure. This initiative is part of a public-private partnership between the company and the Salvadorian government. The latter will benefit from 23% of the net revenues generated by this mining activity.
Ethan Vera: “Geographical decentralization is the essence of Bitcoin mining”
According to Ethan Vera, COO of Luxor, developing Bitcoin mining infrastructures in El Salvador will contribute to reinforcing geographic decentralization. This is a key factor in the network’s sustainability and security. This innovative project, dubbed Lava Pool, aims to take advantage of the country’s abundant geothermal energy. It also plays an active role in integrating Bitcoin into the Salvadoran economy.
Sustainable use of geothermal energy:
A considerable asset for the development of Bitcoin mining
El Salvador has vast renewable energy resources, thanks in particular to the many active volcanoes that dot its territory. These constitute an invaluable source of geothermal energy. What’s more, geothermal energy is a clean, renewable resource whose exploitation is proving particularly promising.
- An environmentally-friendly alternative: Geothermal energy is generated by the natural heat contained in the earth’s subsoil. It’s a clean, renewable resource, unlike fossil fuels such as coal or natural gas.
- A sustainable solution: This type of energy can be used continuously without causing environmental degradation or generating polluting emissions;
- Supporting the energy transition: By using geothermal energy to power its mining infrastructures, Volcano Energy reconciles economic development with environmental protection. It also promotes energy diversification.
Salvadoran government leads the way for increased Bitcoin adoption:
A pioneer in cryptocurrency
In June 2021, El Salvador made history by becoming the first country to adopt Bitcoin as its legal tender. This decision demonstrates the government’s commitment to creating a favorable environment for cryptocurrencies. As well as encouraging their widespread adoption, not least by providing a reliable buyer for locally produced renewable energy.
Establishing synergies between cryptocurrency and various economic sectors
Volcano Energy’s project can be seen as tangible proof of the potential offered by Bitcoin and other cryptocurrencies. Indeed, when supported by bold government initiatives, they can make a significant contribution to a country’s economic development.
The case of El Salvador could inspire other nations wishing to exploit their energy resources responsibly and sustainably. They can feed mining infrastructures or other blockchain-related projects.
Conclusion
The launch of El Salvador’s first Bitcoin mining pool using exclusively geothermal energy is a major challenge. This initiative marks the responsible exploitation of the country’s energy resources.
