A leading Salvadoran engineering academic has claimed that volcano-powered Bitcoin (BTC) mining could be ruinous for the nation’s economy, and says that the government has spent USD 4,672 worth of public funds to mine just USD 269 in BTC.
Per El Diario de Hoy, Carlos Martínez, a professor of Electrical Engineering at the University of El Salvador (UES), claimed that in four days of mining so far, the state has managed to mine a total of BTC 0.00599179 (USD 269 at the time). The professor added that if the price of energy were USD 0.13 per kilowatt-hour, and the government was using 100 miner 3.74kW WhatsMiner M31S mining rigs, the state was paying USD 1,168 in costs. “That’s definitely bad business,” Martínez concluded.
The professor made his calculations based on data released by the government on Friday.
However, President Nayib Bukele added a caveat to the figures, stating that the government was “still testing and installing” its new system.
Bukele stated that “we are still testing and installing, but this is officially the first Bitcoin