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Highlights
- ‘Bitcoin Week’ ended with El Salvador President Nayib Bukele announcing the world’s first ‘Bitcoin City’
- A nearby volcano will power the coin-shaped metropolis
- The week-long celebration saw concerts and parties besides two conferences
To close off the country’s ‘Bitcoin Week’, El Salvador President Nayib Bukele announced Saturday, November 20, that the country plans to build the world’s first ‘Bitcoin City’. Speaking at what was effectively the closing ceremony of a week that saw Bitcoin enthusiasts descend on the country, Mr. Bukele, who at 40 is one of the youngest world leaders, said the city will be powered by a nearby volcano and be tax-free save for value added tax (VAT).
As the crowd hailed the news, Mr. Bukele said 2022 will see the issuance of bitcoin bonds which will begin the funding process for what is visioned to be a metropolis shaped as a coin near the Gulf of Fonseca. Liquid Network constituent Blockstream will develop the bond worth US$1 billion, and initially, US$500 million will be used for the energy and mining infrastructure.
Undoubtedly, Mr. Bukele is betting big on bitcoin. In September, he made it legal tender, El Salvador becoming the first country to do so. And if anything ‘Bitcoin Week’ has shown, it is that volatile price changes in the short to medium term are of no concern to its backers who are betting on the token long term.
The week culminated with its second conference, the three-day Latin America Bitcoin and Blockchain Conference, and saw concerts and parties and generally the bitcoin community celebrating itself.
Also read: Top fintech trends of 2022: Blockchain to dominate
Image source: Copyright © 2021 Kalkine Media
Image description: Bitcoin City announced at Bitcoin Week by El Salvador President Nayib Bukele
How volcanos can be used to mine bitcoin
El Salvador has about 20 active volcanoes out of a total of 30. Geothermal energy from these can be a serious source to power mining infrastructure.
Berlin, not the German capital, but the one in El Salvador had a geothermal plant built in 1999. Here, 16 deep shafts see steam circulation to power three turbines. It produces 107 megawatts, and just five of which can power 300 computers day and night.
Bottom line:
On November 10, bitcoin reached its all-time high of US$69,044.77. It began the year at US$ 29,000.
