Costa Rican Hydroelectric Plant Turns to Bitcoin (BTC) to Keep Running

Costa Rican Hydroelectric Plant Starts Mining Bitcoin

Costa Rica is a country that produces its electricity almost entirely from renewable sources, and it is the state that controls the distribution of energy. According to Reuters, which reports the news, there have been a surplus of production in recent months, which led the hydroelectric plant in question to close, due to lack of demand from the State.

Eduardo Kooper, the company’s president, therefore turned to Bitcoin to find a new use for the power plant, which had been forced to stop working for nine months. He explains that he was very skeptical at first, but the company eventually bet $500,000 to invest in mining equipment.

In total, these are now 650 machines dedicated to 150 customers who continuously mine Bitcoin in the hydroelectric plant.

👉 Find our guide on mining Bitcoin (BTC)

A trend that will become more democratic?

As Eduardo Kooper points out, Bitcoin miners seek to obtain electricity “ clean and inexpensive, with a stable internet connection “. This type of agreement with power plants should therefore tend to become more democratic.

A pioneer in this direction had been Greenidge Generation, a power plant in New York State, which has been using its surplus to mine Bitcoin since 2020. Of course we also think of El Salvador, which has made BTC production a key part of its overall cryptocurrency integration strategy. In the country, a power plant has been opened to use the energy of volcanoes to power Bitcoin mining.

In general, Bitcoin network miners tend to use more and more renewable energy – a point particularly watched as cryptocurrency is highly criticized for its high consumption.

It is difficult to quantify exactly the share of BTC mining that relies on green energies, but it is currently estimated at 40 to 75%. In addition, the great migration of miners, which took place in 2021, tends to favor green energies. China indeed relied heavily on coal-fired power plants, but the United States, which has become the first country in terms of hashrate, use more renewable options.

If these elements are therefore not enough to appease the criticisms made of the Bitcoin network, they show that the cryptocurrency is also in the process of transitioning to a new model.

👉 To go further – Bitcoin: mining, energy consumption and ecology

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About the Author : Marine Debelloir

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Deputy Editor-in-Chief on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that arise from the blockchain and I like to unearth the crispest information to share it with you.
All articles by Marine Debelloir.

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