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Bitcoin mining them using geothermal energy is counterproductive

This is supported by a Salvadoran ecologist

As is now known, the President of El Salvador, Nayib Bukele, recently expressed his intent to use the geothermal energy produced by a volcano in order to extract Bitcoin. If the idea initially passed in sub-order with respect to the introduction of the discussed one Bitcoin law, which introduced the legal tender of BTC within the small Central American country, the first reactions to the proposal are now starting to arrive. Which are certainly not positive, at least judging from what is stated by Ricardo Navarro, a Salvadoran ecologist.

nayib bukele - Bitcoin, mining them using geothermal energy is counterproductive

Alvaro Navarro: geothermal energy costs more than oil

In an interview granted to The Telegraph, Alvaro Navarro, who leads theEl Salvadoran Center of Appropriate Technology, claimed Nayib Bukele's idea is totally nonsensical from an economic point of view. His judgment derives from the fact that geothermal energy is more expensive than oil and that the consequence of the idea in question would be only one: a greater purchase of oil by El Salvador.
Navarro also criticized the decision concerning the development of cities near the volcanoes for the mining of Bitcoin. According to him, thinking of building infrastructure next to a volcano is like believing that you are rich because you live next to a bank. To then add that geothermal energy needs steam and groundwater, or water held in the ground or under rocks. The problem is that El Salvador already suffers from shortages water. In short, the idea of ​​Bukele would be rejected in its entirety, according to Navarro.

The criticisms of Marit Brommer

To give a hand to Navarro is also Marit Brommer, executive director ofInternational Geothermal Association. According to her, it is true that the country has a considerable geothermal potential, but its exploitation cannot take place quickly, instead requiring a preparatory phase of at least two or three years, according to the most optimistic expectations.
Another rejection of no small importance for the Salvadoran president, who has nevertheless shown up to now that he does not take this kind of criticism into account. Which, moreover, resulted in street protests in early summer, without causing any second thoughts on his part.

Bukele's Bitcoin City continues to attract a lot of criticism

La bitcoin city by Nayib Bukele therefore continues to arouse strong opposition from many quarters. The idea was launched a few weeks ago, after the president entrusted a state-owned electricity company, The Geo, the task of providing BTC mining facilities capable of harnessing the energy extracted from volcanoes.
Already on a financial level, however, the idea received a negative reception. A drastic judgment advised by the fact that the operation would be financed by bonds linked to Bitcoin for a value equal to one billion US dollars. The bonds in question, however, were immediately rejected as junk by the rating agencies.

Meanwhile El Salvador buys Bitcoin

In the meantime, Bukele has seen fit to open another front of controversy. She did it buying Bitcoin at a time whose icon crypto is visibly receding. While it is true that the operation makes sense, from a financial point of view, it still puts state funds at risk. As the economist pointed out Peter Schiff, who posted a message on Twitter reminding that more drops in BTC are on the way. A high-tension back-and-forth was born from his speech, which promises to have a sequel.

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Dario Marchetti

I have a degree in Literature and Philosophy from the Sapienza University of Rome, with a thesis on the eastern border of Italy at the end of the First World War. I have collaborated with several sites on many issues and led the work group that published the official CD-Rom of the SS Lazio "History of a love" and "Photographic History of Magical Rome".

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