El Salvedor has setup a Bitcoin mining facility at the base of one of their 25 active volcanos which is allowing them to export their otherwise stranded energy.
The beauty of this model is:
- Unlike aluminum, there is a liquid global market that allows for quick conversion to monetary value
- The ASIC miners are portable and can be stored easily in cargo containers or basically any storage facility
- Once the Bitcoin are mined, there are no physical export logistics to contend with (which is often the reason why so much energy remains stranded)
Think about it, the Alcoa plant in Iceland takes much more physical infrastructure to create the final product which means more over head and a larger footprint to make the conversion economically feasible.
Then once you have the aluminum, you have to physically move it somewhere in order to sell it!
costs, time and complexities.
Every country with stranded energy will setup a Bitcoin mining facility.
But wont that flood the market with too much Bitcoin?
More miners DOES NOT mean more Bitcoin.
The higher the Bitcoin mining hash rate (more miners ultimately), the harder it will be to mine bitcoin (via the difficulty adjustment).
This means that unlike aluminum or any other product, more mining will not affect the market supply dynamics.
The world is watching El Salvador and countries will soon realize that mining Bitcoin with natural energy is a no brainer. 🧠