After converting its national currency to Bitcoin and enforcing mandatory acceptance into corporations in September, El Salvador will increase participation by building a “Bitcoin City” at the base of the Conchagua volcano in the eastern region of La Union.
Announced through President Nayib Bukele on November 20 as a component of a week-long promotional occasion for Bitcoin, the fully circular city structure (as in form) is expected to begin in 2022. , adding restaurants, shops, housing, an airport and a central plaza in the form of the Bitcoin logo. More importantly, the new city is positioning itself as a foreign investment due to its lack of taxes; citizens and visitors will only have to pay the tax on the added price (VAT).
As for the location of the city of the future, this is an integral component of the desires of Bitcoin’s massive strength. Blockchain uses this processing force, and it is estimated that a transaction requires a value of about $100 of electrical property to complete, and the entire grid lately consumes more electrical power according to the year than Finland. mined, which means that Bitcoin will increasingly want computing power (and electrotown).
Enter volcanic geothermal energy, on which Bukele’s management is based to decrease Bitcoin’s large carbon footprint. El Salvador had already installed a working prototype near the Tecapa volcano last month, the returns have been negligible so far. -recovered, since El Salvador is home to 30 volcanoes, 20 of which are active, and the country recently produces a quarter of all electrical energy from geothermal energy.
As for investment, the city, El Salvador and virtual asset infrastructure corporation Blockstream plan to release $1 billion in “Bitcoin bonds” in 2022, most likely in 60 days. Half of the cash will be used to buy mining and electrical infrastructure, while the other part will go on to buy Bitcoins. Investors would get an annual pass of 6. 5%, and for an era of five years, $500 million in Bitcoin would be held in reserve to drive up prices.
Of course, this plan is based on the hope that Bitcoin’s costs will continue to rise; today, a BTC is worth around $56,700, an increase of about $40,000 for the year, but still below its all-time high of $67,500 on November 8. Samson Mow, Blockstream’s lead strategy officer, reportedly said that he expects Bitcoin to succeed at $1 million each by the end of the five-year freeze, making it easier for investors to get their cash back.
El Salvador’s Bitcoin city is rarely the first urban cryptocurrency progression to make headlines last year. Pop singer Akon laid the groundwork for the eponymous city of Akon in Senegal last year, a wise city he would paint with the patented cryptocurrency “AKoin,” yet reportedly paintings. it did not progress at all after a ceremonial block placed in a box of more than one a year ago. Even though Akon’s first city may end up being vaporware, the Ugandan government is already in talks to expand a second one.