If the power consumption of the planned Bitcoin City exceeds the capacity of the volcano, geothermal energy could be sourced from other locations.
Power Supply of Bitcoin City
El Salvador’s president Nayib Bukele has claimed they can use geothermal energy from one of the country’s dormant volcanoes to power his Bitcoin City project.
Bukele said there was a 90% chance they will use the Conchagua volcano to supply 42 megawatts. “That’s enough to power the entire Bitcoin city,” the president said. He went on to say that state-owned electricity company LaGeo will increase its production of geothermal energy from several volcanoes in the country. One of the volcanoes is expected to produce 95 MW.
But we’ve dug new wells and we are planning to increase our geothermal production… by a lot.
Only this well, I tweeted about some months ago, will produce 95 MW of clean, cheap and renewable energy from a source that is going to last at least a couple of million years. https://t.co/Vcp38EgmIt
— Nayib Bukele 🇸🇻 (@nayibbukele) January 8, 2022
The Conchagua volcano is located near El Salvador’s eastern border and has had no confirmed historical eruptions. If the power consumption of the country’s planned Bitcoin City exceeds the capacity of the volcano, it could be taken from other locations, according to Bukele.
Any energy surplus would be used to mine Bitcoin (BTC). This is then added to El Salvador’s treasury. Bukele has previously announced several crypto purchases. In total, this amounts to 1,391 BTC, more than $57.7 million at the moment.
Do you want to trade Bitcoin on one of the largest and most reliable exchanges in the world? Click here. and go to KuCoin.
Crypto in El Salvador
In June, Bukele proposed making some of LaGeo’s facilities available to BTC miners. This was shortly after he announced his intention to make the crypto assets legal tender. In November, El Salvador’s president said the country was planning to launch a Bitcoin City. This project is funded with $1 billion in BTC bonds. Both crypto exchange Bitfinex and Blockstream have said they plan to support the initiative.
The president wants Bitcoin City to become a fully functional city with jobs in tourism, construction, commerce and engineering. Residents reportedly will not pay capital gains, income, property or payroll taxes.