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El Salvador Suffers Huge Loss As Bitcoin Value Plunges

In the last few days, we've all come across someone wallowing in despair as their crypto investments plummeted and hit rock bottom.Bukele's Flawed StrategyPreviously, Bukele instructed a state-owned geothermal electric company to make use of geothermal energy from volcanoes to mine Bitcoins. With geothermal energy, the volcano's heat will vaporize the water underground, creating a rush of powerful steam that will make the turbines spin and produce electricity.There has been a lot of backlash on the environmental impact of mining Bitcoins using heavy computing methods. Experts have suggested that the underlying network to mine Bitcoin is now eating as much energy as Argentina. Crunching complex puzzles to mine cryptocurrencies consumes a huge amount of computing power. Well, this makes things tougher for the country of El Salvador which was already facing a financial crisis. Bukele bet big on the cryptocurrency in hopes of making huge gains and making the country become the first to accept Bitcoin as legal tender in September last year. Well, Bitcoin didn't solve the country's problems.While the crypto market continues to plummet, Bukele's stand on Bitcoin remains the same. Bukele wanted to raise funds by issuing "volcano bonds," which would come in handy to build a "Bitcoin City." However, the launch of bonds has been delayed due to the bad conditions of the crypto market. Indeed, this makes things harder for the nation of El Salvador which was at that point confronting a monetary emergency. Bukele bet enormous on the cryptographic money in order to cause colossal gains and making the country to turn into the first to acknowledge Bitcoin as lawful delicate in September last year. Indeed, Bitcoin didn't tackle the nation's concerns. Source Cris
Jun 14, 2022
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