(via ZEXPR) Bitcoin and ESG are the two most trending highlights in investment world. Some observed that the distributors are progressively involved and are demanding portfolios to be overseen mindfully. Since the analysts have noticed that Bitcoin has been facing an increasing uproar in its prices, they have the world’s premier cryptocurrency on an immediate crash course with ESG – centered investment ventures.
The raising broadcast on each stage regarding bitcoin and ESG has stood out as truly newsworthy, investors are hurrying towards sensibly investing their assets. As per these investors, these two huge patterns represent a possible danger over the shared assets and in the realm of asset management.
With the rise in the value of Bitcoin over the past couple of months, we are expecting it to go higher further in the coming month resulting in investors putting in more resources in Bitcoins. The Investment Center broker Troy Huet says that Investment funds continue to benefit from the current upswing in BTC. Whereas there are some other speculators who although are not much in numbers as compared to those who are optimistic about the uprising movement in Bitcoin. They think hedge funds should consider having a significant-focused approach and incorporate ESG-biddable factors into their portfolios.
Analysts have inspected in a top-to-bottom market editorial during the week. They wanted to see how over the course of sometime Bitcoin has been knocking against environmental, social, and governance (ESG) factors that traders progressively search in their designations.
Some observe that the process of mining the Bitcoin where it is granted to the computer that further settles a perplexing arrangement of calculations requires a tremendous amount of energy consumption.
So, it is an alarming situation in which investors have raised their concerns. Bitcoin was originated in 2009, so keeping all the extreme fluctuations in mind which Bitcoin had over the last decade also means that there has been the same amount of energy consumption, if not more. Keep in mind, if Bitcoin was rising in all its glory, it was also consuming a tremendous amount of energy as well.
Although the value of Bitcoin in the past month has fallen after reaching a high of $50,000 however, the energy that must have required to generate it did not fall: it almost remained the same or even more especially during its impressive climb in the last two months. The same amount of energy consumption was recorded in Argentina in its annual carbon footprint, which is measured by a tool from the researchers that calculates the consumption of currency’s energy.
Now that it has been confirmed by the VISA company, it will use Bitcoin as a mode of transaction, which is one of the largest platforms of payments, it is quite concerning how much use of Bitcoin will harm the environment. It is inspected that the amount of energy consumption required for 500,000 VISA transactions is equivalent to the consumption required for just 1 bitcoin (Isn’t It Shocking?).
It has been confirmed by a renowned University “the University of Cambridge” that the energy consumed by Bitcoin now has surpassed the yearly consumption of countries like the UAE and Netherlands. It is also expected that the time is not so far from where countries like Pakistan and Norway’s energy consumption will also be overrun by Bitcoin.
In short, we can conclude the track that Bitcoin now has taken can only lead towards a catastrophe. To overcome this disaster there are two ways, but each has its own consequence. If we decide to lower the energy consumed by Bitcoin, its value will break down benefiting the economy while undermining the argument for bitcoin as a sound investment or if the energy consumption continues to grow at its rapid pace, we will soon face some deadly environmental consequences.
Bitcoin has been getting hype from big names like Elon Musk, who recently announced his bitcoin purchase of $1.5 billion. Because of his purchase, there has been a significant uprising scale in the buying of Bitcoin by other investors. Elon himself claims that climate change holds a high position in his priority list. But how is he contributing and acting towards his concerns to eliminate climate change when he, himself, is investing in Bitcoin? Such hype by big investors is a negligent act to the point of them being corrupt.
Because of the concerns being raised by some speculators, it is unlikely that investors are unaware of this dilemma. This could have been controlled, or at least awareness should have been spread over its negative social implications by the Government if it had not tumbled off from the radar.
So, the viable solution for this issue is to make the public or the market aware of the consequences. For the time being, the ESG and the Bitcoin mega-trends are setting out toward to create a big impact course.
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