El Salvador’s President calls economist an ‘ID-10t;’ defends Bitcoin volcano mining

El Salvador’s President calls economist an ‘ID-10t;’ defends Bitcoin volcano mining

It’s not every day you see a country’s head of state and a world-renowned economist getting into a Twitter fight, but that’s exactly what happened on the ninth day of this year. When Johns Hopkins economist Steve Hanke questioned the logic of El Salvador’s energy plan for Bitcoin mining, President Nayib Bukele lashed out with answers – after calling Hanke an “ID-10t.”

How much energy can you extract from the inactive Conchagua volcano? Where's the feasibility study? El Salvador already has an enormous energy deficit & imports 22% of its electricity use (@IEA). Without a feasibility study, no one knows how Bitcoin City will affect this deficit. https://t.co/uBMEAGEOXF— Steve Hanke (@steve_hanke) January 8, 2022

Don’t blow your top

“But we’ve dug new wells and we are planning to increase our geothermal production… by a lot. Only this well, I tweeted about some months ago, will produce 95 MW of clean, cheap and renewable energy from a source that is going to last at least a couple of million years.”

We’ve a 90% chance of finding at least a +42 MW well. Enough to power all of #Bitcoin City.And if the city grows far more than expected (good problem), then we can still use the 95 MW plant we are building for the initial powering. pic.twitter.com/7gk1fu8sWg— Nayib Bukele 🇸🇻 (@nayibbukele) January 9, 2022

Raging below the surface

Bukele may be confident about the country’s volcanic energy resources and the profitability of Bitcoin city. However, there are concerns about the region’s local people and what the creation of a fintech hub will do to their land and economy.

On the other hand, Bukele is optimistic. Early in 2022, he predicted that Bitcoin City would start construction and that the Volcano Bonds would be “oversubscribed.”

Market in magma

Bitcoin’s press time price was $41,757.80. A long way from the $65,000+ highs of last year, the market has been steeping in a state of extreme fear. At this moment, it is uncertain what can be expected next.

Bitcoin Fear and Greed Index is 23 — Extreme FearCurrent price: $41,473 pic.twitter.com/fMA45Bmy2o— Bitcoin Fear and Greed Index (@BitcoinFear) January 9, 2022

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