Although many critics of the cryptocurrency sphere and Bitcoin (BTC), in particular, base their objections on their alleged negative impact on the environment, data suggests that such perceptions are not correct, and Bitcoin might even be more sustainable than electric vehicles (EVs).
Specifically, the Bitcoin network uses 52.6% sustainable energy, making it the world’s leading industry user of sustainable power, according to the analysis by Daniel Batten, co-founder of CH4Capital.com and investor in sustainable technologies, published on November 13.
As per his research, mining the Proof-of-Work (PoW) cryptocurrency uses more sustainable energy than the banking sector (39.2%), industrial sector (32%), agricultural sector (19.6%), gold industry (12.8%), as well as iron and steel industry (9.8%).
Bitcoin industry grows, emissions decline
Furthermore, as Batten added, emissions produced by mining Bitcoin have not grown in the last four years and currently amount to 35 MtCO2e (metric tons of carbon dioxide equivalent) despite a rising hashrate, which has recently reached a record high, as Finbold reported on October 17.
In fact, Bitcoin’s hash rate has grown over 450%, its price more than 160%, and the number of users nearly 290%, whereas its network emissions dropped by 9.4% in the past four years, making Bitcoin “the only global industry where industry growth has not led to emissions growth,” as Batten noted.
Finally, the author compared the use of indirect energy sources by EVs and Bitcoin, observing that the former used 36.7% sustainable energy, compared to 53.8% used by the latter, whereas EVs used 63.3% fossil fuel in contrast to 46.2% used by the largest digital asset by market cap.
As Batten concluded, both EVs and BTC have zero direct emissions, but both do have secondary emissions from electricity use. However, “in Bitcoin’s case, it’s mainly hydro,” while in EVs’ case, “it’s mainly coal,” which means that Bitcoin is ultimately more sustainable between the two.
Lack of ESG investments
All things considered, the purpose of the article was to draw attention to the more precise data of Bitcoin’s sustainability compared to ingrained beliefs (supported by less precise data) that the flagship decentralized finance (DeFi) asset is causing harm to the environment.
According to Batten, this imprecise data and confirmation bias “without a solid supporting set of facts” is to blame for the lack of ESG (environmental, social, and governance) investments in the maiden crypto asset when there are $23 trillion locked up in ESG funds and looking for a home.
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