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)
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 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 increase the efficiency of cleaning up the lake.
Melder predicted that "Our environmental cleanup/Bitcoin miner initiative has just begun, but will expand to the point where we can actually take new or unsorted landfill waste and make it into clean energy 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 there is now an economic incentive to address 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
Who is entitled to the gold in a IRA that holds gold?
The IRS considers anyone who owns gold to be “a form money” and therefore subject to taxation.
To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.
Gold can be used to protect against inflation and price volatility. However, it is not a good idea to own gold if you don't intend to use it.
If you are planning to sell your gold someday, it is necessary that you report its value. This can affect the capital gains taxes that you owe when cashing in on investments.
You should consult a financial planner or accountant to see what options are available to you.
What are some of the benefits of a gold IRA
It is best to put your retirement money in an Individual Retirement Account (IRA). It's not subject to tax until you withdraw it. You have total control over how much each year you take out. There are many 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. These earnings don't get taxed if they withdraw funds. This type of account might be a good choice if your goal is to retire early.
Because it allows you money to be invested in multiple asset classes, a ‘gold IRA' is similar to any other IRAs. Unlike a regular IRA which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. This makes gold IRA accounts a great choice for those who want their money to be invested, not spent.
Another benefit to owning IRA gold is the ability to withdraw automatically. That means you won't have to think about making deposits every month. You could also set up direct debits to never miss a payment.
Gold is one of today's most safest investments. Its value is stable because it's not tied with any one country. Even in economic turmoil, gold prices tends to remain relatively stable. Therefore, gold is often considered a good investment to protect your savings against inflation.
Do you need to open a Precious Metal IRA
You should be aware that precious metals cannot be covered by insurance. If you lose money in your investment, nothing can be done to recover it. This includes losing all your investments due to theft, fire, flood, etc.
It is best to invest in physical gold coins and silver coins to avoid this type loss. These items can be lost because they have real value and have been around for thousands years. If you were to sell them today, you would likely receive more than what you paid for them when they were first minted.
Choose a reputable company with competitive rates and quality products if you are looking to open an IRA. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.
When you open an account, keep in mind that you won't receive any returns until your retirement. Remember the future.
Can I keep physical gold in an 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. Investors today use gold to diversify their portfolios because gold is more resilient to financial turmoil.
Many Americans are now more inclined to invest in precious metals like gold and silver than stocks or bonds. It is possible to make money by investing in gold. However, it doesn't guarantee that you'll make a lot of money.
Another reason is the fact that gold historically has performed better than other assets in times of financial panic. Between August 2011 to early 2013, gold prices rose close to 100 percent while the S&P 500 fell 21 per cent. During these turbulent market times, gold was among few assets that outperformed the stocks.
Another benefit to investing in gold? It has virtually zero counterparty exposure. Your shares will still be yours even if your stock portfolio drops. You can still own your gold even if the company where you invested fails to pay its debt.
Finally, gold provides liquidity. This means that, unlike most other investments, you can sell your gold anytime without worrying about finding another buyer. Because gold is so liquid compared to other investments, buying it in small amounts makes sense. This allows one to take advantage short-term fluctuations within the gold price.
- (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)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- 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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
How to Hold Physical Gold in an IRA
The best way to invest in Gold is by purchasing shares of companies that produce it. But, this approach comes with risks. These companies may not survive the next few years. If they survive, there's still the risk of losing money due to fluctuations in the price of gold.
Another option is to purchase physical gold. You can either open an account with a bank, online bullion dealer, or buy gold directly from a seller you trust. These options offer the convenience of easy access, as you don't need stock exchanges to do so. You can also make purchases at lower prices. It's also easy to see how many gold you have. So you can see exactly what you have paid and if you missed any taxes, you will get a receipt. You are also less likely to be robbed than investing in stocks.
However, there can be some downsides. There are some disadvantages, such as the inability to take advantage of investment funds and interest rates from banks. You can't diversify your holdings, and you are stuck with the items you have bought. Finally, the taxman might want to know where your gold has been placed!
BullionVault.com offers more information on buying gold for an IRA.
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