El Salvador continues showing progress on Bitcoin.
El Salvador continues showing progress on Bitcoin.
- From Volcanoes to Space: Miners in El Salvador Connect to Bitcoin via Satellite
The Salvadoran geothermal plant where bitcoin is currently being mined will be connected to the Bitcoin network through a satellite system. To do this, they will use the service of the Canadian company Blockstream.
This Wednesday, November 17, Salvadoran authorities installed in the geothermal field Berlin, in Usulután, "a satellite signal to ensure the mining of Bitcoin," as Noticiero El Salvador reported via Twitter. "It is a receiver that will help connect to the Blockstream service through a satellite in space," the media outlet added.
Samson Mow, Blockstream's CSO, was personally in charge of installing the company's system, as he laid out on his social media account. "The installation is now connected to our satellite network and receives Bitcoin blocks from geosynchronous orbit," Mow wrote.
This connection to Blockstream's satellite system seeks to ensure permanent link to Bitcoin from the station dedicated to Bitcoin mining with energy from the Salvadoran volcanoes. As reported by CriptoNoticias, one of the advantages of the relationship with this satellite is to keep Bitcoin nodes updated without internet access. Shortly after announcing that El Salvador would adopt bitcoin as legal tender, the country's president, Nayib Bukele, reported last June that they would use energy from volcanoes for Bitcoin mining, upping the ante for public investment in the cryptocurrency.
Bitcoin Mining Profits in El Salvador
By the end of September, this project was already a reality. It is important to note that the Central American country had received its first reward in BTC for its energy contribution to mining in the Bitcoin network.
By that time, Bukele shared a screenshot where you could see a total balance of 0.01 BTC, which equaled about $515 in mining profits. Right now, that same balance would equal almost $600, as shown by the CryptoNewsprice calculator at the time of writing.
It is unknown how much BTC the Central American country has received for its mining facility, nearly two months into its operation.
The Salvadoran president has declared the purchase of a total of 1,120 bitcoins, which is equivalent to about 67 million dollars right now. And with the profits from the rise in the price of the cryptocurrency, the president plans to build a veterinary hospital and remodel about 20 Salvadoran schools.
- El Salvador to inaugurate Bitcoin City backed by USD 1 billion in Bitcoin bonds
The Bitcoin City development will feature the proactive participation of prominent cryptocurrency companies, including cryptocurrency exchange Bitfinex and Adam Back's Blockstream.
El Salvador continues to lead Bitcoin (BTC) adoption, and this time, President Nayib Bukele announced the launch of Bitcoin City, which will be initially funded with $1 billion Bitcoin bonds.
Bukele first announced the initiative at the El Salvador Bitcoin Week conference, which sought to celebrate the widespread adoption of Bitcoin in the country and increase citizen participation.
"I thought we had to make a big announcement on this #BitcoinWeek. So today, I want to announce that we are going to build the first #BitcoinCity," President @nayibukele. pic.twitter.com/7yHQLyIjBx
- Presidential House (@PresidenciaSV) November 21, 2021
In Bukele's own words:
"In BitcoinCity, we will have digital and technological education. Geothermal energy for the whole city and efficient and sustainable public transportation."
The development of Bitcoin City will have the proactive participation of leading cryptocurrency companies, including cryptocurrency exchange Bitfinex and Adam Back's Blockstream. According to Bitfinex CTO Paolo Ardoino, the exchange will support El Salvador's Bitcoin City initiative by launching a securities platform to hold Bitcoin tokens. He added:
The president envisions Bitcoin City becoming a fully functional city with residential areas, shopping malls, restaurants, a port, "all on Bitcoin". In addition, residents will only be subject to value-added tax (VAT), which according to Bukele, will be used to pay the bonds of the municipality, and the rest for public infrastructure and maintenance of the city.
At the conference, Blockstream's chief security officer Samson Mao clarified the feasibility of raising the $1 billion in Bitcoin tokens:
"At Bitfinex, they have a lot of whales. So I don't see any problem filling a $1 billion bond."
Mao also informed citizens that Bitcoin bonds worth $500 million would be subject to a five-year lock-in period, taking the invested capital out of global circulation. In addition, the businessman explained how a 10-fold increase in similar initiatives in other countries would eventually take half of Bitcoin's 21 million market capitalization out of circulation.
Shortly after the widespread adoption of Bitcoin, the government of El Salvador reinvested unrealized profits into various infrastructure development projects.
In early November, Bukele announced that the surplus obtained from the State Bitcoin Trust account would be used for the construction of 20 new schools:
"When this project started, we hadn't made as much money in FIDEBITCOIN [state-run BTC trust account] as we do now. So we decided to make the first 20 Bitcoin schools."