The New York Times

March 9th, 2021

by Andrew Ross Sorkin.
https://www.nytimes.com/2021/03/09/business/dealbook/bitcoin-climate-change.html

Bitcoin’s Climate Problem

The article begins with a statement made by Bill Gates. He recently said that Bitcoin uses more
energy than any other method and is not a good thing for climate change. Bitcoin, a financial
trend worth about $ 1 trillion, has become inevitable, with big companies like Tesla and
individual investors alike rushing to stock up on the digital token.
But recent studies said that the annual carbon emissions from the electricity required to mine
Bitcoin and process its transactions are equal to the amount emitted by all of New Zealand or
Argentina. Moreover, one Bitcoin transaction is the “equivalent to the carbon footprint of
735,121 (seven hundred thirty-five thousand one hundred twenty-one) Visa transactions or
55,280 (fifty-five thousand two hundred and eighty) hours of watching YouTube,” according to
Digiconomist.
All of which raises a crucial question: Does the concern of companies and investors on climate
and sustainability issue pose an existential threat to Bitcoin’s success?
Lots of payment systems and different companies whose premises are to help reduce climate
change through lower carbon emissions, like PayPal, Square, and even Tesla are currently
investing in Bitcoin. Other companies are also considering whether to add Bitcoin to their
balance sheets.
So far, Bitcoin’s carbon problem has not slowed down its price.
Bitcoin supporters say that estimates of its carbon footprint are overstated. And if the computers
that mine and help transact bitcoins are attached to an electric grid that uses wind and solar
power, mining and using it will become cleaner over time.
Several companies are working on some counterintuitive ideas to turn Bitcoin green, considering
using wind, solar and hydro power. Also, users could batch transactions on something called a
Lightning Network, essentially a payment channel between two users that would use less power
to process transactions.
However, some companies are still reserved regarding Bitcoin investments. For example, Mr.
Fink of BlackRock, he said he was still skeptical of the entire idea of Bitcoin, before he can even
contemplate the climate issues.