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
electric vehicles
In this article, Frank Holmes, CEO of U.S. Global Investors and executive chairman of HIVE Blockchain Technologies, looks at the recent market changes to cryptocurrency prices, in part due to environmental concerns raised by Tesla’s Elon Musk. He also explores the role renewable energy plays in the way cryptocurrencies are mined.
And just like that, Elon Musk has turned on Bitcoin.
In a tweet on Wednesday (12 May), the self-proclaimed “Technoking of Tesla” said his company which announced in February that it bought $1.5bn in Bitcoin [BTC-USD] would be suspending vehicle purchases using the cryptocurrency. Musk cited crypto miners’ “increasing” use of fossil fuels, particularly coal, “which has the worst emissions of any fuel.”
Maybe not so much for Tesla.
Tesla is now pulling off a rapid U-turn on bitcoin, saying the company will no longer accept bitcoin payments due to bitcoin’s environmental impact. We are concerned about the rapidly increasing use of fossil fuels for bitcoin mining transactions, especially coal, which has the worst emissions of any fuel, Musk explained in a tweet.
From a purely investment viewpoint, bitcoin has been a good investment for Tesla, with the company’s bitcoin holdings contributing substantially to its bottom line.
However, Tesla is keen to be seen as a leading ESG investment, and holding bitcoin won’t cut it.
Note To Elon: Crypto Miners Are Part Of The Solution To Curbing Greenhouse Gas Emissions forbes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from forbes.com Daily Mail and Mail on Sunday newspapers.
May 11, 2021
Legislation under consideration in New York to stop Bitcoin mining over environmental concerns wonât stop an increasingly-green industry.
A bill currently in committee at the New York State Senate is calling for a ban on bitcoin mining for three years while an environmental assessment is conducted to measure greenhouse gas emissions and effects on wildlife of all mining operations in the state.
New York Senate Bill S-6486, introduced by democratic State Senator Kevin Parker and co-sponsored by democratic State Senator Rachel May, is currently under review by the senate’s Environmental Conservation Committee.
One report about the bill called bitcoin miners “bitcoin-hungry profiteers” and noted that “Upstate New York has recently become a hotbed of mining activity, and there could be more mines in the works.”