Pierre Rochard: bitcoin mining will generate economic development in El Salvador

Pierre Rochard, vice president of research at Riot Platforms, gave a keynote address to students of CUBO+, a program of the Bitcoin Office.

Pierre Rochard, vice president of research at Riot Platforms, one of the most recognized bitcoin mining companies in the world, based in Texas, United States, affirmed this Saturday that bitcoin mining will generate economic development in El Salvador.  

In a keynote lecture given at Don Bosco University to students of CUBO+, a program of the National Bitcoin Office (ONBTC), supported by Plan B Network and Fulgur Ventures, which allows Salvadorans to learn about the digital currency with international experts, Rochard explained that there are several advantages for the country related to the mining operation, which is the process in which more bitcoins are generated. 

The first advantage has to do with the energy sector because, to the extent that mining companies settle in the territory and build their plants to carry out their operations, there is the possibility that this generation will contribute to lowering the price of energy for everyone.

This is because, as Pierre explained in his presentation, it is very common for mining companies to inject a good part of their energy into the grid at times when the price has increased to help lower rates; in addition, companies that have their plants constantly integrate their surpluses into the system.  

This is already visible in the country with companies like Volcano Energy, which announced exclusively with “Diario El Salvador” that it will mine in the territory from 2025 with its own solar and wind power plants, which will generate 130 megawatts (MW) initially for its bitcoin operations but will also inject surpluses to the local grid at low cost. 

In addition, in the next few years, this firm will develop a geothermal power plant that will replace solar and wind generation. However, these facilities will not stop producing energy but will continue to contribute to the grid. The point is that the more energy supply there is, the lower the prices go.

Therefore, for Rochard, getting energy at a low cost will create the conditions for more economic growth, because “the wealth of an economy starts with energy.”

“The lower the cost of energy for industrial users, and residential users, we will have the conditions for more economic growth. Every sector of the economy needs electricity, and the cheaper the energy is, the more uses we can make of it and improve our quality of life,” added the expert. 

On the other hand, Riot’s vice president pointed out that mining will allow El Salvador to continue strengthening its Bitcoin reserves. The Government currently has more than 5,740 units of Bitcoin, which have been generated in large part through mining by the State. 

However, Rochard also made an invitation to Salvadoran citizens to accumulate Bitcoin on their own, as this will allow them to grow in the long term. Unlike saving with fiat currencies such as the dollar, which are affected by inflation and constantly reduce their value because of it, bitcoin assures you that what you buy now will still be the same tomorrow and in ten years. 

“You have a leader who is teaching by example, accumulating bitcoin for the people of El Salvador, but we must also take responsibility in our hands and say that in addition to what the government is accumulating for me, I also want to accumulate. why? Because the more long-term savings you have, the more opportunities you will have. A lot of opportunities come to us constantly, but we don’t always have the capital to do it.” 

Pierre Rochard’s lecture was one of several that CUBO+ students will receive over three months, to acquaint the participants – who belong to different professions – with all aspects related to the technology, philosophy, and economics behind bitcoin.

On this occasion, the students learned how Bitcoin mining works throughout its value chain and the internal processes in the network. 

Source: Diario El Salvador