After a decade of existence and excellent performance, Bitcoin mining still suffers a dilemma, high energy use. The industry, which has always been hailed for high passive income, has never been spared from critiques. Many reports imply that Bitcoin mining consumes power higher the most mid-sized countries.

The disapproval is not just because of energy consumed but more of the high carbon footprint left. Based on analysts, the result of highly intensive Bitcoin mining has been environmental degradation.

To address this dilemma, many Bitcoin miners amended their sources of power. Some switched to more sophisticated carbon-neutral sources. The most popularized green energy systems include volcanoes and nuclear. 

The concept of harnessing volcano energy to mine Bitcoin has existed for as long as BTC existed. However, El Salvador’s case in 2021 brought to light this unique system.

EL Salvador— Volcanode

El Salvador decided to take a chance with crypto when they embraced Bitcoin as a legal tender in 2021. Nayib Bukele, the country’s head, and a host of legislators, passed a new rule legitimizing Bitcoin. 

To Bukele, Bitcoin represented hope for true financial freedom. Blockchain’s ability to mimic traditional payment systems would steer financial efficiency in the Central American nation.

Approximately two years later, Nayib Bukele’s dream is materializing. The project, which once seemed highly ambitious, is now accepted by most Salvadorans.

Then came the Bitcoin mining project. The Central American country ventured into the Bitcoin mining undertaking. October 2021 was the outset of the country’s inaugural tryouts in digital currency mining.

Nayib Bukele tweeted about the first Bitcoin mined in the country using volcanic energy in what looked like a triumphant proclamation.

https://twitter.com/nayibbukele/status/1443832539496525852

This country began mining Bitcoin through a company called Volcano Energy. Volcano Energy is a 241 MW Bitcoin mining facility built at a cost of about $1 billion. 

Like in Iceland, EL Salvador’s Bitcoin mining leverages a merger of geothermal energy and high computational power. This initiative has been hailed for promoting clean energy in crypto mining.

About 20 months after the project’s inception, El Salvador continues to mine Bitcoin by leveraging volcano energy. As Bitcoin gains acceptance as a legal tender, so does Bitcoin mining using volcano energy. 

Iceland, the home of Volcano crypto mining

In a land initially inhabited by Vikings lies one of the biggest volcano regions. Iceland, a country defined by cold and wetness, is also the best in green energy production. The mountainous geology of this area not only brings a great climate but lots of active volcanoes. This blend gives the perfect condition for generating hydro and geothermal power.

The determined occupants of the region exploited the power of volcanoes to develop infrastructure and community. Consequently, Iceland saw the establishment of dozens of geothermal power plants. 

Owing to the green energy and the locals’ industrious nature Iceland is shaping up to be a harbour for crypto mining. It is among the European countries with the highest hash rates.

Estimates indicate that Iceland’s Bitcoin miners devour about 120 MW of power. That’s an enormous number considering the population of less than 500k. Miners have been operating in Iceland for over a decade using this energy.

So, how has this volcanic energy been used in Bitcoin mining? 

Bitfury, Iceland’s leading crypto miner

Widely hailed as a champion in the blockchain sector, Bitfury Group is a major crypto miner. The central point of this industry leader’s attention is the development of futuristic solutions to hasten blockchain adoption.

Founded in 2011, Bitfury’s glory peaked as the company began offering mining services. It’s a one-stop shop for mining Bitcoin. It is one of the companies known for harnessing volcanic energy in Bitcoin mining. 

After years of mining Bitcoin, Bitfury marched into Iceland in 2018, commending the country’s use of carbon-neutral energy.  

The region playing host to Bitfury’s mining activities is prevalent for geothermal energy from volcanoes.

Svartsengi Geothermal Powerplant housing mining

The Svartsengin Geothermal powerplant has played home to Bitcoin mining enterprises in recent years. Located in Peninsula Reykjanes, this is likely a principal partner of Bitfury. 

This network was fashioned to offer power to households and industries. Most of the plant’s excess energy has been powering crypto mining BTC. 

Final Word

The guide has been exploring mining Bitcoin and crypto using volcanic energy. Of course, it’s no secret that crypto mining is a profitable activity, especially considering the stock performance of mining companies. The biggest dilemma is energy sources; volcanoes have become reliable for this major undertaking. 

El Salvador’s Bitcoin mining using Volcano Energy company is currently the most popularized owing to the country’s embrace of BTC. A simple Google search could lead you to think that this Central American country leads in this trend. 

However, Iceland, the centre of clean energy from Volcanoes, has been mining Bitcoin for about a decade. As established, most of the mining energy in Iceland comes in the form of Volcano power.

To answer our main question, Iceland continues to lead in using volcano energy in Bitcoin mining.

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