El Salvadors President Bukele & Bitcoin Mining , Part 2

Geothermal power meet Bitcoin

Ideas ahead of his time

As I read an article on this topic, my first idea was that putting a Plug and Play miner in homes of everyday citizens was very smart, possibly brilliant, as form of non-inflationary universal basic income.
I focused on that aspect , but I should have also spoke about using geothermal energy to power Bitcoin miners.

Cost

As some of you know, running a bitcoin node, otherwise known as "mining" isn't free.
You have significant start-up costs for the hardware, but a very significant cost is the cost of electricty to power the miner 24 hours a day, seven days a week costs.
I have built and ran a small mining farm in my house, six miners, 8 GPUs each, mining Z-cash and later Ethereum.
Quite frankly the cost that broke my budget was not the GPUs, it was the electricity during the bear market.
El Salvador is in a unique position to get their energy for free, from their volcanos, and this is not a theory, it is a real thing called geothermal energy.
Read this Wilkapedia Entry on Geothermal:

El Salvador is home to one of the largest geothermal energy plants in the world, called the "Ahuachapán Geothermal Power Plant," which is located in the western part of the country and has been operational since the 1970s. source

El Salvador is one of the top ten geothermal energy producers in the world. Since 1975, the Ahuachapán geothermal field has been in continuous and successful commercial operation. source

El Salvador is building new geothermal power plants in San Vicente, Chinameca, and Volcán de Conchagua. The plants are expected to be commissioned in 2025.
source

Necessity is the mother of invention

When you look at El Salvador, you see a country which has astounded the world with it's creativity.
El Salvador's President Bukele decided to make Bitcoin a national legal currency.
El Salvador's President Bukeledecided to create Bitcoin City as a global draw for people in the cryptocurrency ecosystem to build businesses in El Salvador and pay zero taxes.
El Salvador's President Bukele expanded their education system focus to include Science, Technology and Math Educations, focused on computer technology and blockchain technology. This creates globally marketable skills for their citizens and bring in cash from the outside to bring wealth into their country, which can then be used to develop more businesses.

Putting it all together

So this is my thinking; if the government distributed plug and play bitcoin miners and then provided free or near free electricity, they would have a nation of bitcoin miners.
powered by nearly free energy from geothermal sources.
But this is just part of the El Salvador potential windfall from Bitcpoin Mining, I have talked about another huge advantage El Salvador could employ to greatly increase their profits from Bitcoin mining for everyday people in El Salvador. I need to explain to you mining pools.

Bitcoin Mining Difficulty and Mining Pools

Mining Difficulty

source

The mining difficulty of a cryptocurrency such as Bitcoin indicates how difficult and time-consuming it is to find the right hash for each block. Mining difficulty changes depending on whether the total Bitcoin hash power consumed by the network has also increased or decreased. In this video we will cover Bitcoin Mining, and how it impacts us in the cryptocurrency space.
source

That's a bit complicated, but basically mining difficulty means how hard is it to get paid, based on you competing with other bitcoin miners with similar or stronger miniing computers. In this instance Mining Difficulty makes it difficult to get paid. But one way to get around this is to join a mining pool.

Mining Pools

source

What is the purpose of mining pools and how do they work?
A mining pool is when individual crypto miners join together and pool their resources in order to improve their chances of obtaining a block reward. Rewards for solving blocks are paid out according to how much processing power someone contributed to the pool. So the more processing power, the higher the chances of earning rewards. [source](What is the purpose of mining pools and how do they work?
A mining pool is when individual crypto miners join together and pool their resources in order to improve their chances of obtaining a block reward. Rewards for solving blocks are paid out according to how much processing power someone contributed to the pool. So the more processing power, the higher the chances of earning rewards.)

The Utimate Mining Pool: the country of El Salvador

Mining pools provide a steady income stream by distributing rewards among participants, reducing the long wait times associated with solo mining.
Lower barriers to entry.
source
Joining a pool allows miners with less powerful equipment to participate in the mining process and earn rewards that would be difficult to achieve independently.
source
By pooling resources in a crypto mining pool, miners can reduce the variability and unpredictability of mining rewards, ensuring more stable returns. source

Most miners don't mine independently, they join a "Mining Pool" where their mining power is added to the power of the pool, making the pools mining power larger and increasing the chance of getting paid. The most important thing is that by joining a large mining pool individual miners insure that they get paid almost every day. Which is very amazing, because many miniers go several days without getting paid. So mining pools are amazing.
Now imagine if you have a government issued Plug and Play Bitcoin Miner, which automatically enrolls you in a mining pool called the El Salvador Mining Pool.
** A whole country of miners joined the same pool.**
Now the whoile country is getting paid a little something every day because they are part of a huge pool.
Or the whole country could choose to join one of the worlds largest mining pools, making it the most dominant pool in the world.
Amazing

So...last words and most important thing I can say.

When you think about the technological evolution of miners making them simpler and simpler to operate,...
Then you think about free hardware
Then you add free or near free electricity
Then you add a huge mining pool called the country of El Salvador
And suddenly everyone in the countyris getting paid a little bitcoin every day.
And now the idea of El Salvador's President Bukele putting miners in every home in El Salvador takes on a very different meaning.
Universal Basic Income from Bitcoin idea now sounds like a feasable idea.
Now President Bukele of El Salvador looks like a genius about to give every family in El Salvador a wealth generator for their family into perpetuity.

The End

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