{"id":198295,"date":"2021-03-10T04:41:07","date_gmt":"2021-03-10T01:41:07","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/existential-threat-to-bitcoin-investing-companies-from-carbon-fallout\/"},"modified":"2021-03-10T04:41:07","modified_gmt":"2021-03-10T01:41:07","slug":"existential-threat-to-bitcoin-investing-companies-from-carbon-fallout","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/existential-threat-to-bitcoin-investing-companies-from-carbon-fallout\/","title":{"rendered":"# \u2018Existential threat\u2019 to Bitcoin-investing companies from carbon fallout"},"content":{"rendered":"<p>&#8220;<strong># \u2018Existential threat\u2019 to Bitcoin-investing companies from carbon fallout <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDMvMjdlYjI5NjctYjY3MS00ODEyLTgzOGYtOTk0MTBkZDRhOWVjLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>Allocating capital to Bitcoin risks a backlash from environmentally conscious investors,<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.theage.com.au\/business\/markets\/bitcoin-has-a-green-problem-and-it-could-pose-an-existential-threat-20210310-p57995.html\"> according<\/a> to author and co-anchor of CNBC&#8217;s <em>Squawk Box<\/em>, Andrew Ross Sorkin.<\/p>\n<p>In a piece for the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.deccanherald.com\/business\/bitcoins-climate-change-impact-under-scrutiny-960067.html\">International New York Times<\/a>, syndicated worldwide, Sorkin pointed to statements by Lawrence Fink, CEO of Black Rock \u2014 the largest asset managers in the world \u2014 indicating his company would make all future investment decisions based on \u201chow they plan to meet the climate challenge.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Tesla\u2019s <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24TSLA&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$TSLA<\/a> recent bet on bitcoin sullies its green credentials. Mining and transacting the cryptocurrency requires huge amounts of computing power and electricity, much of it from fossil fuels <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/btc?src=hash&amp;ref_src=twsrc%5Etfw\">#btc<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/ev?src=hash&amp;ref_src=twsrc%5Etfw\">#ev<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/lv0pvossdr\">pic.twitter.com\/lv0pvossdr<\/a><\/p>\n<p>\u2014 Michael A. Gayed, CFA (@leadlagreport) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/leadlagreport\/status\/1363488971976830983?ref_src=twsrc%5Etfw\">February 21, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>Sorkin mentioned PayPal, Square and Tesla as examples of BTC-buying companies with strong green initiatives. But such initiatives seem in principle at odds with Bitcoin\u2019s energy inefficient method of making transactions which adds to the carbon in the atmosphere:<\/p>\n<blockquote><p>\u201cAll of which raises a crucial question: Does the movement among investors toward companies that rank highly for environmental, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social<\/a> and governance issues pose an existential threat to Bitcoin\u2019s success?\u201d<\/p><\/blockquote>\n<p>Sorkin authored a book on the Wall Street banking crisis, <em>Too Big to Fail<\/em>, in 2009, which was on the <em>New York Times<\/em> bestseller list for six months and made into a movie in 2011.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Tesla received $1.5 billion in environmental subsidies in 2020, funded by U.S. taxpayers. The subsidies are intended to reward and encourage environmentally friendly behavior. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Tesla?src=hash&amp;ref_src=twsrc%5Etfw\">#Tesla<\/a> then spent the same amount buying <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a>, which wastes electricity and harms the environment.<\/p>\n<p>\u2014 Peter Schiff (@PeterSchiff) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/PeterSchiff\/status\/1359850198332301312?ref_src=twsrc%5Etfw\">February 11, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Tesla came under fire in Feb. after Ben Dear, the CEO of sustainable products investor Osmosis Investment Management<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/article\/us-crypto-currency-tesla-climate-insight-idUSKBN2AA193\"> told<\/a> <em>Reuters<\/em> that the company should \u201cconcentrate on measuring and disclosing to their market their full suite of environmental factors,\u201d in light of its Bitcoin purchase. The statement emphasized the need for greater transparency by Tesla when it comes to environmental accountability:<\/p>\n<blockquote><p>\u201c(We hope that) if they continue to buy or indeed start mining Bitcoin, that they include the relevant energy consumption data in these disclosures.\u201d<\/p><\/blockquote>\n<p>According to the <em>3rd Global Cryptoasset Benchmarking Study<\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.jbs.cam.ac.uk\/faculty-research\/centres\/alternative-finance\/publications\/3rd-global-cryptoasset-benchmarking-study\/\"> published<\/a> by the University of Cambridge, up to 39% of all proof of work mining globally is conducted using renewable sources of energy, mostly hydroelectric power. Other estimates put the figure higher.<\/p>\n<p><a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">App<\/a>roximately two-thirds of all Bitcoin<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-02-10\/bitcoin-is-red-hot-can-it-ever-be-green-quicktake\"> mining<\/a> takes place in China. While a significant portion of this is done using renewable energy, coal remains the country\u2019s biggest source of energy. Mining operations in Inner Mongolia were recently curtailed after failing to meet the standards of a government-mandated energy efficiency review.<\/p>\n<p>Regardless of attempts to utilize green energy, Bitcoin currently suffers from an image problem in the form of a \u201cmassive carbon footprint,\u201d as<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/fortune.com\/2021\/03\/07\/bitcoins-other-high-price-the-surging-currency-is-leaving-a-massive-carbon-footprint\/\"> described<\/a> by <em>Forbes<\/em> in a recent article. In February, a self-professed \u201cgreen hacker\u201d called for the destruction of Bitcoin on the basis that it is immensely damaging to the environment.<\/p>\n<p>As the Bitcoin network<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/digiconomist.net\/bitcoin-energy-consumption\/\"> consumes<\/a> as much energy as a mid-sized country on a daily basis, some companies, like Jack Dorsey\u2019s Square, have allocated funds to green Bitcoin mining projects in an effort to further alleviate the cryptocurrency\u2019s reliance on fossil fuels.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/existential-threat-to-bitcoin-investing-companies-from-carbon-fallout\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# \u2018Existential threat\u2019 to Bitcoin-investing companies from carbon fallout &#8221; Allocating capital to Bitcoin risks a backlash from environmentally conscious investors, according to author and co-anchor of CNBC&#8217;s Squawk Box, Andrew Ross Sorkin. In a piece for the International New York Times, syndicated worldwide, Sorkin pointed to statements by Lawrence Fink, CEO of Black Rock&#8230;<\/p>\n","protected":false},"author":1,"featured_media":198296,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDMvMjdlYjI5NjctYjY3MS00ODEyLTgzOGYtOTk0MTBkZDRhOWVjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74989,74871,74872,76574,74927,36402],"class_list":["post-198295","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-mining","tag-electricity","tag-green-technology","tag-paypal","tag-square","tag-tesla"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/198295","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=198295"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/198295\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/198296"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=198295"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=198295"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=198295"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}