Just How Big a Deal is El Salvador Adopting Bitcoin?

A little while ago I tweeted this


So I asked on the LeoFinance Discord channel and got an answer from @edicted.



The numbers from this article are old, so production from S17+s will probably be a bit lower. But current mining machines are likely more efficient. So maybe somewhat balances out.

But let's go with the 11 million dollars a month of revenue as a starting point.

11 million dollars per month for 12 months is 132 million dollars a year.

According to ye olde wiki, GDP is about 25 billion a year


132 million compared to 25 billion is 0.5%. So this one plant could increase annual production by half a percent. This one plant. One.

That. Is. Huge.

Obviously there ain't no such thing as a free lunch. There are costs in building the geothermal plant. There are costs in maintenance. There is competition in the hashing network. Let's say that all reduces net production by... oh... 90%. We go from 0.5% of GDP for the whole country to 0.05% of GDP - again, for the whole country out of this one operation.


Now I'll be the first to tell you I know nothing about El Salvador's politics or culture. But I can do simple math and see that this is a giant opportunity for them if they don't fuck it up.

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