A climate-tech investor has described a glowing view of the Bitcoin network, suggesting that its positives for the environment outweigh its negatives by a ratio of 31 to 1..
On January 12, the self-proclaimed philanthropist and environmentalist Daniel Batten claimed in a Twitter thread that “Bitcoin is probably the most important ESG technology of our time”.
According to Batten, the 31:1 positive impact ratio was calculated by researching and interviewing network engineers, climate scientists, bitcoin mining engineers, methane abatement experts, and solar and wind installers.
The results uncovered 21 ways bitcoin (BTC) could be positive for the environment and just five ways it could be negative..
1/7
Environmentally, Bitcoin has a positive:negative ratio of 31:1
This means Bitcoin is probably the most important ESG technology of our time
As a fund manager I’d opine its gross negligence for an ESG investor not to consider it in their mix
Here’s a data summary
—Daniel Batten (@DSBatten) January 12, 2023
1/7. From an environmental point of view, bitcoin has a positive:negative ratio of 31:1. This means that bitcoin is probably the most important ESG technology of our time. As a fund manager, I think it is grossly negligent for an ESG investor not to take this into account. Here is a summary of the data:
pic.twitter.com/Lbk0lWAA79
According to Batten, the results are “strangely similar” to those of the solar sector.
Many of the positives had to do with renewable energy grids and the benefits of mining.such as being the leading technology to respond to the demand for energy from the network due to excess and lack of supply. Depending on power demand restrictions, bitcoin mining farms can be turned on or off.
Also, BTC mining can be a solution to geo-restriction. Power curtailment is a deliberate reduction of production below what could be produced to balance power supply and demand, or due to transmission limitations.
There are also benefits in innovation and methane reductionaccording to Batten’s conclusions.
BTC mining can be used to reduce landfill gas and flare gas emissions by using this otherwise wasted energy to power the rigs.
The handful of negatives included emission levels from the grid, the production of e-waste and the opening of previous fossil fuel fields. Nevertheless, according to Batten, the positives for the environment far outweigh the negatives:
“The rapid renewable adoption of bitcoin mining may inspire other industry sectors to follow suit.”
“We see that bitcoin mining can play a real role in global methane mitigation,” he concluded..
On January 13, the South China Morning Post took issue with the notion that bitcoin was good for the environment.; reported that BTC accounted for 86.3 million tons of carbon dioxide emissions in 2022.
However, he did acknowledge that Ethereum’s CO2 emissions fell from 21.95 million tons in 2021 to 8,824 tons last year., according to data from Forex Suggest. Ethereum’s switch to proof-of-stake in September 2022 reduced network power consumption by 99.98%.
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