A town in Guatemala, inspired by El Salvador's Bitcoin Beach is focusing on cleaning its lake by diverting cooking oil to bitcoin miners.
A circular bitcoin economy in Guatemala is using resources that would otherwise be wasted to fuel a local bitcoin mining operation, giving its resident financial autonomy and demonstrating a viable economic path outside of the government-controlled economy.
Patrick Melder MD, the founder of the circular economy coined “Bitcoin Lake,” told Bitcoin Magazine that his "Kaboom” bitcoin mining project was the result of a desire for clean water in nearby Lake Atitlan and to provide a steady income source to the community.
He stated that "We don’t have any major donations or endowments to do what we’re doing." This contrasts starkly with El Salvador's Bitcoin Beach which was partly funded by a donation. "Bitcoin mining was a means to get bitcoin flowing into our community."
There had been many attempts to clean the lake before this project. Most of them failed to address the problem at hand. Melder says that an overhaul approach increases complexity, and reduces the chance of completion.
He said that a major effort to clean up the lake, which cost upwards of $300million over the past five years, failed due to its complexity and the inability of large stakeholders to agree on a solution.
Bitcoin Lake chose a different approach. They started small by repurposing used cooking oils to power their bitcoin mining ASICs.
Melder explained that the cooking oil could be thrown in the street or go to the landfill, which is located several hundred feet above Lake Atitlan. It would either end up in the watershed or the lake.
This generator powers the Kaboom project's bitcoin mining ASICs. The photo shows the generator's fuel tank, which is fueled by gallons of cooking oil. (Photo/Bitcoin Lake).
Melder stated that he hopes to kickstart the initiative and create a snowball effect within neighboring communities, as people realize that cleaning up the environment is not only feasible but also financially profitable.
The environment is a concern for all community leaders and citizens, but resources and tools are not available to address the problem. Our goal is to make a sliding scale use of stranded/waste energy to mine Bitcoin and clean up the lake. This will also create wealth for the communities. Because it's a sliding-scale project, in one small community we might have a 'Kaboom like' project or small bio-digesters collecting wastewater.
Bitcoin Lake is slowly racking ASIC machines that generate a steady stream bitcoin income by repurposing resources that would otherwise go to waste and finding their way into local lakes. (Photo/Bitcoin Lake)
Beyond Mining
Panajachel, Guatemala. (Photo/Bitcoin Lake)
Melder used to take his family to Panajachel in Guatemala every summer during the undergraduate years of his daughters. However, after their graduation, the trips to Central America were over. Melder and his wife continued to look for ways to return. He found out about Bitcoin Beach in El Salvador not long after. This inspired him to return to Panajachel to start Bitcoin Lake.
He wrote that he wanted to bring the Bitcoin Beach model from Panajachel, which is a beautiful village on Lake Atitlan in Guatemala's highlands. In a 2021 blog post, he detailed his vision for the project.
Melder explained in the blog post that the goal of Bitcoin Lake was to clean up the lake and create economic opportunities for "small but vibrant Guatemalan towns."
"Everything that we do in the community has to do with bitcoin. Melder explained to Bitcoin Magazine that the community is either funded or teaches about bitcoin. Melder stated that the three main goals of the community were to educate about bitcoin and create a circular economy that uses bitcoin mining as an economic incentive.
Bitcoin Lake focuses on the former, but the other goals are not ignored. The project also helped to introduce Bitcoin-related courses to the Centro Educativo Josue.
Melder explained that the children are taught everything about Bitcoin. They learn about 'what's money?' what's inflation?' 'why it was created?' and the basics of mining bitcoins, as well as how to set up a full node. We are proud to state that we have been doing it since January 2022, and that we have had help from Bitcoiners all over the globe.
Melder explained that the work that started at the school has spread to a wider audience in the community, to help people of all ages understand the world of peer to peer digital money.
He said, "We have held educational meetings on bitcoin for adults and business owners in our community and tried to include the leaders of the indigenous communities as well."
Adoption is easier when users and business owners have a better understanding of bitcoin. Instead, a movement is born naturally.
Melder stated that since January this year, we have onboarded more than 60 businesses in Panajachel and Guatemala. In Guatemala, there are about 200 businesses we have onboarded to accept Bitcoin.
Accepting bitcoin by Panajachel, Guatemala. (Photo/Bitcoin Lake)
The community will continue to expand its efforts as Bitcoin awareness grows and adoption continues to increase. Melder plans to continue to develop the repurposing and reuse of stranded and wasted resources in order to increase the steady income of the community and improve the lake's cleanliness.
Melder predicted that "our environmental cleanup/Bitcoin miner initiative" has just begun. However, it will continue to grow over the next year to be able to take any unsorted landfill waste (new and old) and make it into an energy source to mine Bitcoin. We are currently working with a group from the U.K. in order to bring this to fruition. It will have a significant impact on Panajachel, Guatemala, and other developing countries as it provides an economic incentive for cleaning up the huge waste problem in Guatemala and many other countries. We are proud to be the first to market this technology.
Panajachel, Guatemala Landfill (Photo/Bitcoin Lake)
Frequently Asked Questions
How much do gold IRA fees cost?
$6 per month is the Individual Retirement Account Fee (IRA). This includes the account maintenance fees and any investment costs associated with your chosen investments.
If you want to diversify, you may be required to pay extra fees. The type of IRA you choose will determine the fees. Some companies offer checking accounts for free, while others charge monthly fees for IRA account.
In addition, most providers charge annual management fees. These fees vary from 0% to 11%. The average rate is.25% annually. However, these rates are typically waived if you use a broker like TD Ameritrade.
How much should precious metals be included in your portfolio?
First, let's define precious metals to answer the question. Precious Metals are elements that have a very high relative value to other commodities. This makes them valuable in investment and trading. Gold is by far the most common precious metal traded today.
There are also many other precious metals such as platinum and silver. The price for gold is subject to fluctuations, but stays relatively stable in times of economic turmoil. It is also not affected by inflation and depression.
In general, all precious metals have a tendency to go up with the market. They do not always move in the same direction. When the economy is in trouble, for example, gold prices tend to rise while other precious metals fall. Investors expect lower interest rates which makes bonds less appealing investments.
However, when an economy is strong, the reverse effect occurs. Investors prefer safe assets such as Treasury Bonds and demand fewer precious metals. They become less expensive and have a lower value because they are limited.
Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
What are the benefits to having a gold IRA
The best way to invest money for retirement is by putting it into an Individual Retirement Account (IRA). It will be tax-deferred up until the time you withdraw it. You can decide how much money you withdraw each year. There are many types and types of IRAs. Some are better suited for college students. Some are better suited for investors who want higher returns. Roth IRAs, for example, allow people to contribute after they turn 59 1/2. They also pay taxes on any earnings when they retire. The earnings earned after they withdraw the funds aren't subject to any tax. This account is a good option if you plan to retire early.
The gold IRA allows you to invest in different asset classes, which is similar to other IRAs. Unlike a regular IRA, you don't have to worry about paying taxes on your gains while you wait to access them. People who want to invest their money rather than spend it make gold IRA accounts a great option.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. That means you won't have to think about making deposits every month. To make sure you don't miss any payments, you can also set up direct deductions.
Finally, gold is one the most secure investment options available. Because it isn't tied to any particular country its value tends be steady. Even in times of economic turmoil, gold prices tend not to fluctuate. It is therefore a great choice for protecting your savings against inflation.
Is the government allowed to take your gold
Your gold is yours and the government cannot take it. You have earned it by working hard for it. It belongs exclusively to you. However, there may be some exceptions to this rule. You could lose your gold if convicted of fraud against a federal government agency. Also, if you owe taxes to the IRS, you can lose your precious metals. However, if you do not pay your taxes, you can still keep your gold even though it is considered property of the United States Government.
Statistics
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
External Links
forbes.com
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads, Example, and Risk Metrics
finance.yahoo.com
cftc.gov
How To
How to hold physical gold in an IRA
The best way of investing in gold is to purchase shares from companies that produce gold. This method is not without risks. There's no guarantee these companies will survive. Even if they do survive, there is still the possibility of losing money to fluctuating gold prices.
Alternative options include buying physical gold. This requires you to either open up your account at a bank or an online bullion dealer or simply purchase gold from a reputable seller. This option has many advantages, including the ease of access (you don’t have to deal with stock markets) and the ability of making purchases at low prices. It is easier to view how much gold has been stored. You will receive a receipt detailing exactly what you paid. There's also less chance of theft than investing in stocks.
However, there are disadvantages. You won't be able to benefit from investment funds or interest rates offered by banks. It won't allow you to diversify any of your holdings. Instead, you'll be stuck with what's been bought. The taxman might also ask you questions about where your gold is located.
BullionVault.com is the best website to learn about gold purchases in an IRA.
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By: Namcios
Title: Visit The Guatemalan Lake Town Mining Bitcoin With Used Cooking Oil
Sourced From: bitcoinmagazine.com/culture/guatemala-town-mining-bitcoin-with-used-oil
Published Date: Wed, 21 Sep 2022 21:48:19 GMT
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