Home Cryptocurrency El Salvador’s first volcano-powered Bitcoin mining project goes live

El Salvador’s first volcano-powered Bitcoin mining project goes live

by Harry Garcia

El Salvador has made a significant leap in its efforts to integrate Bitcoin and renewable energy resources with the launch of its first Bitcoin mining pool, Lava Pool. The pool, powered by renewable geothermal energy, is a collaboration between energy company Volcano Energy and tech corporation Luxor Technology.

The establishment of Lava Pool is a pioneering move for El Salvador, as it seeks to harness the abundance of renewable geothermal energy for crypto mining. Volcano Energy, a public-private partnership, will maintain the pool and has committed to contributing 23% of its net income to the Salvadoran government.

One key advantage for Lava Pool is its utilization of Luxor’s Hashrate Forward Marketplace, which offers hedging strategies to protect against market volatility. This mechanism has already been adopted by leading players in the Bitcoin mining market.

Gerson Martinez, Volcano Energy’s CSO, emphasized the importance of this project, stating that it showcases El Salvador’s pioneering role in the Bitcoin ecosystem. The move to merge Bitcoin into the country’s energy infrastructure has the potential to boost the economics of new energy projects, particularly in remote areas. It can provide immediate revenue and offer flexible load management capabilities to support the grid during periods of high demand or stress.

The launch of Lava Pool is part of the wider Volcano Energy project, an ambitious endeavor aiming to establish a global Bitcoin mining powerhouse fueled by renewable solar and wind energy. The project plans to develop a 241 MW renewable power generation park in El Salvador’s Metapan region, with a total commitment of $1 billion from Bitcoin industry leaders.

The initial computational power of the Bitcoin mining farm is projected to exceed 1.3 EH/s, putting Volcano Energy among the top 20 mining pools by hashrate. This achievement represents a significant step towards El Salvador’s economic freedom, energy competitiveness, and self-reliance, all of which the nation aims to achieve through the integration of Bitcoin and renewable energy resources.

As the first Bitcoin mining pool in El Salvador goes live, the country continues to make its presence known on the global Bitcoin stage. It showcases the potential of Bitcoin mining and renewable energy integration to the rest of the world. However, it remains to be seen how this development will impact the broader acceptance and integration of Bitcoin mining within the global energy infrastructure.

It is important to note that the author of this article has an interest in one or more assets mentioned. CryptoSlate does not endorse any project or asset mentioned in this article. Readers should conduct their own research before making any investment decisions in cryptocurrencies. Additionally, buying and trading cryptocurrencies should be considered a high-risk activity, and individuals should exercise caution and do their due diligence.

You may also like

@2023 – All Right Reserved. Developed by Crypto Explorers