All of us have heard about it.
I am talking about the mounting pressure that investors, engineers, corporations, and financiers are all facing: the pressure to find a more environmentally sustainable crypto asset.
The proof of work model that Bitcoin uses may end up driving more and more investors to proof of stake currencies.
Of course there are different opinions on this subject, and some are optimistic that Bitcoin will in fact survive despite environmental concerns.
Other sources point out just how keen some investors are on a more sustainable solution including carbon-neutral Bitcoin investing.
Take a look:
Miners are obsessed with finding efficient ways to use energy and it's driving innovation that may end up helping our environment. In fact a recent estimate suggests 76% of miners use renewable energy. #Bitcoin #BNB
— Syed Raza Shah, MD (aka Crypto Doctor) (@SyedRazaShah123) May 31, 2021
Is Bitcoin really bad for the environment?
A thread exploring the connection Crypto has with Nature 🧵#Bitcoin #dogecoin
— Aditya Narayana (@Ad1tyaNarayana) May 25, 2021
Decrypt offered up one firm’s positive outlook:
“I don’t think it’s up to any individual to decide where energy should be used,” said Daniel Roberts, co-founder of Iris Energy Pty, adding, “It’s a market-based decision where Bitcoin, by virtue of the attraction and adoption its gained, is commanding that level of energy to secure it, to secure people’s savings.”
Iris Energy uses renewable energy for its mining operations. The recent renewed scrutiny Bitcoin has faced over its carbon footprint demonstrates—per Roberts—that his company has approached this industry the right way.
“The recent news in the space and the focus on ESG continues to highlight that the business model we embarked on many years ago is likely the right one,” Roberts added.
Coin Telegraph offered up a solution to the problem:
Morris explained that Energy Web is currently working directly with a number of Bitcoin miners to build software that leverages blockchain technology to detect in near real-time the carbon footprint of the Bitcoin network. Morris noted:
“I wish the Bitcoin community would move to a more efficient consensus mechanism, but I don’t think this will happen, so we have to come up with a solution now to fix the challenges with proof-of-work consensus.”
Morris further believes that a near-term solution to begin enabling a greener Bitcoin network could be through the development of carbon-neutral exchange-traded funds.
Although carbon-neutral ETFs may sound like a foreign concept, some investment management firms have already taken steps to ensure just this. For example, Toronto-based Ninepoint Partners LP is an independent investment management firm with about $6.5 billion in assets under management.
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