The country of El Salvador is planning to build a Bitcoin City using geothermal energy to mine the cryptocurrency and power the infrastructure. The city will be located at the base of the Conchagua volcano which, until now, has never erupted. Since 2021, when the president of El Salvador Nayib Bukele announced the project, there hasn’t been a significant development. However, the president and the officials are confident in their vision to build the city.
El Salvador became the first nation in the world to accept Bitcoin as an official currency. Therefore, the Bitcoin City is the next significant step in the country’s investment in the controversial cryptocurrency.
Since El Salvador is looking to become an important Bitcoin manufacturer, they believe that this project is the key. Using the energy of the volcano nearby, the country will both power the city and mine Bitcoin.
As a nod to the cryptocurrency, the city will have the shape of a Bitcoin. Moreover, it will be a whole urban development in addition to its thematic purpose. The city will have its residential buildings, commercial areas, service industry, cultural and entertainment places bars, and an extensive ray of transportation options.
Despite the initial promises, the project has met with severe criticisms and concerns. Many believe that El Salvador’s plan to build such a location from zero is not feasible on different accounts.
The biggest of these concerns is that many ecologists and scientists do not believe in the whole premise of the Bitcoin City. Studies show that using geothermal energy costs more than using oil and is a highly challenging endeavor. Therefore, El Salvador will have to use an immeasurable amount of oil just to get some power from the volcano and then deliver it to the city.
All in all, whether the Bitcoin City is feasible or not will not have its definitive answer for some time. While the officials of El Salvador, the design team, and the architects are hopeful, many remain skeptical as time will show what happens in the future of Bitcoin and El Salvador.
