El Salvador declared BTC as legal tender. Not as a substitute for the Salvadorian Colon’ but as a parallel currency. BTC is a means of world wide transfer of money and much of Salvadorian economy is based on remittance from abroad. BTC is a means for individuals to save. It’s volatile but it’s property none the less and never has gone to zero. BTC can be borrowed against and lent. My Coinbase account pays 6% if I choose to tie it up, and I can borrow about 10% of my principle value. Not much need of an “emergency account” if I can borrow 100K against 1M BTC using a mouse click. All of this is swell and may make a difference to commerce in El Salvador but how do they mine free money?
El Salvador’s power generation is state owned. The power source is geothermal from Volcanos. El Salvador has many volcanos. BTC is hard currency meaning there is a basis for it’s value. In that respect it is like gold. Gold costs about $900 dollars an ounce to mine. Anything above $900 is profit. Below $900 the mine shuts down. There is therefore an energy equivalent measured in GW which is equivalent to an ounce of gold. Energy is the universal currency. BTC likewise has an energy equivalent. The data looks like it takes 72 terawatts of power to mine 1 BTC, and it takes 10 minutes to mine a BTC. Geo-thermal power generation is 95% efficient in El Salvador. The byproduct is water vapor as in nearly 100% green. So El Salvador turns an abundant natural resource (heat) into money in a highly efficient way to benefit it’s citizens, and the result is portable and enriches a poor country. Effectively El Salvador is turning heat into gold in a way that does not harm the environment.
El Salvador isn’t the only one. Greenland uses abundant geo-thermal and hydro-electricity to mine BTC. Greenland is the worlds largest Island. It is a true land of power. People laughed at Trump for wanting to buy Greenland, but if you can mine BTC for free maybe it’s not that stupid. Greenland has no way to export it’s riches of power as it’s an Island that sits between the Arctic and Atlantic oceans, but I bet Greenland has no trouble exporting BTC. BTC in fact becomes the transmission wires that connects Greenland and those who need what Greenland has to offer. I wonder how many GW of power are used to dry people’s underwear or heat up their coffee or run the refrigerators and A/C?
Imagine how many poor countries are sitting on the gold mine of BTC mining. Imagine the international commerce that natural resource will provide.