FinancialCentre reports -Bitcoin’s environmental impact needs to be discussed among investors


London, UK — Bitcoin has taken over the cryptocurrency world—and seems like it’s here to stay. Wondering what all the fuss is about? We’re here to help you understand everything you need to know about Bitcoin, from its history to how it works. Bitcoin is a decentralized digital currency, meaning it’s not subject to government or financial institution control. Bitcoin was invented in 2009 by an anonymous person or group of people under the name Satoshi Nakamoto.

Bitcoins can be exchanged for other currencies, products, and services. In the year 2015, over 100K businesses accepted bitcoin payments. Bitcoin is often referred to as digital gold due to its limited supply and decentralized nature. Just 21 million bitcoins will ever be created. While more than half of these have already been mined, the future supply is diminishing as the rate of new bitcoin mined slows.

Environmental Aspect of Bitcoin

Bitcoin’s energy consumption has been the subject of much criticism. A January 2018 report from Digiconomist estimated that, if Bitcoin were a country, it would rank 61st in the world in terms of electricity consumption. In February 2018, The Guardian reported that Bitcoin’s energy usage had doubled since September 2017 and was estimated to use as much electricity as the country of Denmark. To put this in perspective, if Bitcoin were a country it would rank 61st in the world in terms of electricity consumption (ahead of countries like Argentina, the Czech Republic, and Qatar).

FinancialCentre Broker Bernadette Murphy says that environmental, social, and governance (ESG) methods have become increasingly popular among American investors as a result of their concerns over the effects of investments on the environment. Despite a stated interest in ESG investments, many Americans aware of cryptocurrency do not understand its potentially harmful environmental consequences, particularly Bitcoin (BTC), according to a new Forbes Advisor poll. Bitcoin, according to the Cambridge Centre for Alternative Finance, now consumes electricity at a rate of 127 terawatt-hours (TWh) per year. That is more than the entire energy consumption of Norway.

Survey

A poll was conducted to discover what impact Bitcoin has on the environment and climate change among a panel of 2,000 Americans. A total of 58% responded that it had no environmental effect or a minor impact. Approximately 32% of respondents feel that Bitcoin has no effect on the environment.

More than a third of respondents believe that BTC is “good for the environment,” according to a recent poll. Only 6% of respondents consider Bitcoin to be a major environmental hazard.

These survey results are not very surprising. The majority of respondents reported that they were not aware of Bitcoin’s effect on the environment. It is possible that these individuals do not understand how BTC mining works or the amount of energy that it consumes but being an investor one should be very keen about these things.

In 2020, Bitcoin miners generated 0.85 pounds of carbon dioxide for each kilowatt-hour used in the United States. Bitcoin mining, according to an estimate, releases a whopping 40 billion tons of carbon dioxide, and the United States has more than 37% of the overall worldwide Bitcoin mining capacity. The top 4 states in the US for Bitcoin mining are Washington, Louisiana, Georgia and Texas. North Carolina is also a hub for Bitcoin mining.

According to one estimate, each Bitcoin purchase or sale operation emits half a ton of carbon dioxide. To make matters worse, the carbon emissions needed to mine one Bitcoin rise roughly every four years—each time Bitcoin undergoes a “halving,” which reduces the rewards paid for mining it in half.

Time for action

As an investor, you can take some actions to help reduce BTC’s impact on the environment.

You could:

1. Use a carbon-offsetting service to reduce the emissions caused by your BTC usage.

2. Use a crypto wallet that doesn’t require mining or that uses low-energy Proof of Stake (PoS) algorithms.

3. Use a BTC exchange that chooses to offset its emissions.

4. Advocate for more energy-efficient BTC mining methods.

5. Support BTC development that prioritizes sustainability.

6. Educate others about the environmental impact of BTC and how they can help reduce it.

7. Move to a country with cleaner energy sources for BTC mining.

8. Invest in renewable energy projects that help offset the emissions caused by BTC.

9. Use your influence as a BTC investor to pressure exchanges and miners to reduce their emissions.

10. Choose not to invest in BTC or other cryptocurrencies until they become more sustainable.

Concluding remarks

Bitcoin’s environmental impact is a serious problem that needs to be addressed. As an investor, you can play a role in reducing BTC’s carbon footprint. By taking some of the actions listed above, you can help make Bitcoin more sustainable and reduce its impact on the environment. Also, there is a dire need to spread awareness about this problem so that more and more people can join the fight against climate change.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.

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