The Greening of Cryptocurrency: Early Players in Sustainable Blockchain
A cryptocurrency mining module next to a solar power array. (source: BusinessWire)
will be greener. It is inevitable.
There are a number of promising initiatives underway to improve the energy profile of Bitcoin and other cryptocurrencies and accelerate the shift to a sustainable blockchain sector. These include more use of renewable energy, but also a range of other initiatives to embrace more energy-efficient protocols, carbon offsets, demand response and greener mining pools.
The past week’s selloff in the cryptocurrency markets has focused attention on Bitcoin’s energy usage, and its reliance on fossil fuels for the mining operations that secure its blockchain operations. A recent study by Cambridge University found that about 39 percent of the Bitcoin network is powered by renewable energy. This is an international challenge, as the U.S. represents about 7 percent of the global hashrate, compared to
ESG and Cryptocurrency: Considerations for Market Participants eurocapital.gr - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from eurocapital.gr Daily Mail and Mail on Sunday newspapers.
Green energy tokens capitalize on Teslaâs decision to nix Bitcoin payments Teslaâs decision to cease Bitcoin payments ignited a green energy debate that sent the price of low energy consumption protocols like NANO, HBAR and EWT higher. 20640 Total views Altcoin Watch
After months of touting the benefits of Bitcoin (BTC) and blockchain technology, Tesla CEO Elon Musk shocked the crypto Twitter on May 12 by announcing that the electric car company would suspend its accepting BTC as a form of payment, citing concerns related to the energy required to mine the top cryptocurrency.Â
As Tesla issued its statement, Bitcoin, Ether and a large segment of altcoins sold off sharply but there were a few projects that found clever ways to capitalize off the mayhem by tweeting about the âgreenâ nature of their networks that require only a tiny fraction of the energy required to maintain the Bitcoin network.
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For market participants pivoting toward ESG and digital assets, weighing the issues at the crossroads of these two megatrends is critical.
The huge rise in popularity of Bitcoin and the growing interest by mainstream financial institutions in virtual assets as an investable and tradable asset class has shone a light on the cryptocurrency industry’s environmental, social, and governance (ESG) performance.
The vast majority of the world’s financial institutions manage climate risk and other ESG risks in their own portfolios. As a result, many financial institutions perform related diligence on corporates they look to service, whether by traditional lending, capital markets underwriting, or direct investment. While the focus has primarily been on the ESG performance of cryptocurrency miners (given their role in the creation of cryptocurrencies and the energy requirements associated with that process), the ESG perfor