As a crypto investor with a background in environmental science, I find Greenpeace’s campaign against Bitcoin’s Proof-of-Work (PoW) consensus mechanism deeply concerning. The high energy consumption and significant carbon emissions associated with Bitcoin mining are not just numbers on a report; they represent real-world damage to our planet.
As a crypto investor, I’ve come to notice the growing concern around Bitcoin‘s Proof-of-Work (PoW) consensus mechanism by Greenpeace USA, a prominent environmental advocacy group. This mechanism, known for its enormous energy consumption and substantial carbon footprint, is now under increased scrutiny from the organization.
The collective is currently targeting Wall Street, accusing it of financing Bitcoin mining operations at the world’s leading corporations and contributing to environmental damage.
Wall Street Contributes to Bitcoin Pollution
As a crypto investor, I’ve come across a concerning report released by Greenpeace titled “Bankrolling Bitcoin Pollution.” This study sheds light on the financial backing of major Wall Street players like Trinity Capital, Stone Ridge Holdings, BlackRock, Vanguard, and MassMutual towards Bitcoin mining operations. In simpler terms, these financial institutions are essentially funding the energy consumption required for Bitcoin mining, which could be contributing to a new climate threat.
The report reveals that these institutions offer incentives and funds to keep miners engaged in mining practices, which have negative impacts on the environment.
In the year 2022, Greenpeace disclosed that the mentioned corporations were accountable for releasing approximately 1.7 million metric tons of carbon dioxide (CO2) into the atmosphere. This amount is equivalent to the annual CO2 emissions produced by more than 335,000 typical American homes.
Bitcoin mining has evolved into a profitable business, necessitating significant financial resources for building infrastructure and procuring advanced computing hardware to carry out the necessary operations.
Due to the significant expenses involved in mining operations, miners rely on funding from banks and investment firms. The report indicates that these financial institutions, especially those based on Wall Street, consistently provide funds to miners to gain profits from the gold mines.
Greenpeace pointed out the discrepancy between banks’ advocacy for environmental friendliness and their involvement in crypto mining, which they financially benefit from despite its negative impact on sustainability.
Call for Accountability
Because of the perceived dishonesty, the organization has demanded answers from financial institutions such as BlackRock, requesting transparency and action.
As a responsible and conscious crypto investor, I’m concerned about the potential environmental impact of my investments in Bitcoin. Greenpeace is urging companies involved in supporting the Bitcoin mining industry to disclose these risks to their shareholders. By doing so, we investors can make informed decisions and take action if necessary, ensuring that our financial support doesn’t contribute to harmful environmental practices.
The report emphasizes that banks and investment firms have an obligation to provide crucial climate risk details related to Bitcoin to their stockholders and clients, who are presently lacking this essential information.
The report brings attention to the fact that Bitcoin miners have received substantial backing in the US, leading to a significant number of mining operations being established within the country. However, these facilities consume vast amounts of electricity and are identified as major contributors to carbon emissions. For instance, Greenpeace named Riot Platforms as one such company with a mining site near Rockdale that emits the most carbon in the US, according to their 2022 estimation.
War against Bitcoin PoW
As a researcher following the environmental impact of Bitcoin, I’ve witnessed Greenpeace’s long-standing opposition to the Proof of Work (PoW) mechanism underlying the cryptocurrency. In 2022, they spearheaded a campaign called “Change the Code, Not the Climate,” emphasizing their belief that technological advancements could reduce Bitcoin’s carbon footprint rather than resorting to drastic climate changes.
During that period, the Bitcoin community pressed for a change in the protocol’s coding, advocating for the adoption of less energy-consuming algorithms like Proof-of-Stake (PoS) instead.
As a researcher investigating the energy consumption of Bitcoin mining, I urged Fidelity Investments to align with our cause and support government intervention in this matter. We collectively filed a petition, expressing concern over the excessive energy usage by Bitcoin miners within the U.S.
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2024-06-14 16:07