Today, Bitcoin consumes as much energy as a small country. This certainly sounds alarming — but the reality is a little more complicated.
But how much energy should a monetary system consume? Right now, organizations around the world are facing pressure to limit the consumption of non-renewable energy sources and the emission of carbon into the atmosphere.
As cryptocurrencies, and BitcoinBitcoin1$ 28,373.100.18%-6.01%-15.89%details in particular, have grown in prominence, energy use has become the latest flashpoint in the larger conversation about what, and who, digital currencies are really good for.
Whether you feel Bitcoin has a valid claim on society’s resources boils down to how much value you think Bitcoin creates for society.
It’s important to understand that many environmental concernsEnvironmental, Social, and Corporate Governance (ESG) refers to three central factors in measuring the sustainability and societal impact of an investment.Learn more are exaggerated or based on flawed assumptions or misunderstandings of how the Bitcoin protocol works.
The actual negative impact we’re talking about is likely a lot less alarming than you might think.