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" and emphasized the stark contrast 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 everything from "what is money?" to "what is inflation?" to "why bitcoin was created," and even how to set up a full bitcoin 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 efficiency and clean-up of the lake.
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
Can I have physical gold in my IRA
Not just paper money or coins, gold is money. Gold is an asset people have used for thousands years as a place to store value and protect their wealth from economic uncertainty and inflation. Gold is a part of a diversified portfolio that investors can use to protect their wealth from financial uncertainty.
Many Americans are now more inclined to invest in precious metals like gold and silver than stocks or bonds. Although owning gold does not guarantee that you will make money investing in it, there are many reasons to consider adding gold into your retirement portfolio.
One reason is that gold historically performs better than other assets during financial panics. The S&P 500 declined 21 percent during the same period. Gold prices increased nearly 100 per cent between August 2011 – early 2013. During turbulent market conditions gold was one of few assets that outperformed stock prices.
One of the best things about investing in gold is its virtually zero counterparty risk. Your stock portfolio can fall, but you will still own your shares. You can still own your gold even if the company where you invested fails to pay its debt.
Finally, gold provides liquidity. You can sell your gold at any time without worrying about finding a buyer, which is a major advantage over other investments. Because gold is so liquid compared to other investments, buying it in small amounts makes sense. This allows you to take advantage of short-term fluctuations in the gold market.
Can I own a gold ETF inside a Roth IRA
You may not have this option with a 401(k), however, you might want to consider other options, like an Individual retirement account (IRA).
Traditional IRAs allow for contributions from both employees and employers. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.
An ESOP can provide tax advantages, as employees are allowed to share in company stock and the profits generated by the business. The money invested in ESOPs is taxed at a lower rate that if it were owned directly by an employee.
An Individual Retirement Annuity (IRA) is also available. An IRA allows you to make regular payments throughout your life and earn income in retirement. Contributions to IRAs don’t have to be taxable
How Much of Your IRA Should Include Precious Metals?
The most important thing you should know when investing in precious metals is that they are not just for wealthy people. It doesn’t matter how rich you are to invest in precious metals. You can actually make money without spending a lot on gold or silver investments.
You could also consider buying physical coins like bullion bars, rounds or bullion bars. Shares in precious metals-producing companies could be an option. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. They offer the potential for long-term, sustainable growth even though they aren’t stocks.
Their prices are more volatile than traditional investments. So, if you decide to sell your investment down the road, you’ll likely see more profit than you would with traditional investments.
Should You Invest in gold for Retirement?
This will depend on how much money and whether you were able to invest in gold at the time that you started saving. If you are unsure which option to choose, consider investing in both options.
In addition to being a safe investment, gold also offers potential returns. This makes it a worthwhile choice for retirees.
Most investments have fixed returns, but gold’s volatility is what makes it unique. As a result, its value changes over time.
But this doesn’t mean you shouldn’t invest in gold. You should just factor the fluctuations into any overall portfolio.
Another benefit to gold? It’s a tangible asset. Gold is much easier to store than bonds and stocks. It can be easily transported.
You can always access gold as long your place it safe. You don’t have to pay storage fees for physical gold.
Investing in gold can help protect against inflation. You can hedge against rising costs by investing in gold, which tends to rise alongside other commodities.
You’ll also benefit from having a portion of your savings invested in something that isn’t going down in value. When the stock market drops, gold usually rises instead.
You can also sell gold anytime you like by investing in it. You can also liquidate your gold position at any time you need cash, just like stocks. You don’t even need to wait until retirement to liquidate your position.
If you do decide to invest in gold, make sure to diversify your holdings. Do not put all your eggs in one basket.
Also, don’t buy too much at once. Start with a few ounces. Then add more as needed.
The goal is not to become rich quick. It’s not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
While gold may not be the best investment, it can be a great addition to any retirement plan.
Who is entitled to the gold in a IRA that holds gold?
The IRS considers gold owned by an individual to be “a type of money” and is subject taxation.
You must have gold at least $10,000 and it must be stored for at the least five years in order to take advantage of this tax-free status.
Owning gold can also help protect against inflation and price volatility, but it doesn’t make sense to hold gold if you’re not going to use it.
If you plan on selling the gold someday, you’ll need to report its value, which could affect how much capital gains taxes you owe when you cash in your investments.
To find out what options you have, consult an accountant or financial planner.
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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you take distributions before hitting 59.5, you’ll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear in 1990 – WSJ
- You want to keep gold in your IRA at home? It’s Not Exactly Legal – WSJ
investopedia.com
- Are You a Good Candidate for a Gold IRA
- What are the Options? Types, Spreads and Example. Risk Metrics
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China’s Evergrande Crisis – Forbes Advisor
bbb.org
How To
The History of Gold as an Asset
From the very beginning of time, gold was a currency. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. Aside from its inherent value, it could be traded internationally. Different weights and measurements existed around the world, however, because there were not international standards to measure gold. One pound sterling, for example, was equivalent in England to 24 carats, and one livre tournois, in France, to 25 carats. A mark, on the other hand, was equivalent in Germany to 28 carats.
In the 1860s, the United States began issuing American coins made up of 90% copper, 10% zinc, and 0.942 fine gold. This led to a decrease of demand for foreign currencies which in turn caused their prices to rise. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. The U.S. government needed to find a solution to their debt because there was too much money in circulation. To do this, they decided that some of their excess gold would be sold back to Europe.
Many European countries didn’t trust the U.S. dollars and started to accept gold for payment. Many European countries began to use paper money and stopped accepting gold as payment after World War I. The value of gold has significantly increased since then. Although the price of gold fluctuates today, it remains one of your most safe investments.
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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
