{"id":321619,"date":"2021-08-11T16:14:00","date_gmt":"2021-08-11T13:14:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/measuring-success-offsetting-crypto-carbon-emissions-necessary-for-adoption\/"},"modified":"2021-08-11T16:14:00","modified_gmt":"2021-08-11T13:14:00","slug":"measuring-success-offsetting-crypto-carbon-emissions-necessary-for-adoption","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/measuring-success-offsetting-crypto-carbon-emissions-necessary-for-adoption\/","title":{"rendered":"# Measuring success: Offsetting crypto carbon emissions necessary for adoption?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2d8e7d61b85\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2d8e7d61b85\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/measuring-success-offsetting-crypto-carbon-emissions-necessary-for-adoption\/#Offsetting_carbon_emissions_is_necessary_for_adoption\" >Offsetting carbon emissions is necessary for adoption<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/measuring-success-offsetting-crypto-carbon-emissions-necessary-for-adoption\/#Will_carbon_offsetting_spur_adoption\" >Will carbon offsetting spur adoption?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Measuring success: Offsetting crypto carbon emissions necessary for adoption? <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDgvYTY2M2NmNTQtOTY1Yi00ZDcwLTkyNmMtZjNiNDk2ZDcxNjcwLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>Debates regarding the amount of energy required to mine Bitcoin (BTC) have been ongoing. While tech pioneers such as Elon Musk have recently mentioned that the crypto industry is headed toward a greener future, some academic researchers have noted that mining BTC consumes\u00a0more power than that of small countries.\u00a0<\/p>\n<p>While these arguments are still hotly debated, it has become clear that awareness of green crypto initiatives has been on the rise. For instance, some Bitcoin miners are now looking at nuclear power<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cnbc.com\/2021\/08\/10\/why-nuclear-energy-could-be-a-clean-energy-solution-for-bitcoin-miners.html\"><\/a> as a solution to remove carbon emission from the electricity leveraged to mine BTC. At the same time, crypto companies have started to offset their carbon emissions to ensure industry sustainability. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Offsetting_carbon_emissions_is_necessary_for_adoption\"><\/span>Offsetting carbon emissions is necessary for adoption<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Francisco Benedito, CEO of ClimateTrade \u2014 a fintech company helping organizations achieve sustainability by offsetting CO2 emissions \u2014 told Cointelegraph that the crypto sector is experiencing a \u201cgreen hype cycle,\u201d which is pushing industry sustainability. Although Benedito believes this is being exhibited in a number of different ways, he explained that offsetting carbon emissions has now become one of the most important initiatives.<\/p>\n<p>This is especially the case as crypto companies continue to face increasing\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/global\/Documents\/Energy-and-Resources\/gx-eri-decarbonization-report.pdf\">pressure<\/a> from investors, lenders and regulators to decarbonize in the coming years. Venki Kumar, manager of climate data and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> at KPMG U.S., told Cointelegraph that crypto organizations are now expected to estimate the carbon footprint of their digital asset holdings: \u201cLike any other digital technology, crypto has a carbon footprint, which fluctuates depending on the mix of energy resources available for use by network validators.\u201d<\/p>\n<p>Yet estimating a company\u2019s carbon footprint is only half the battle. In order to ensure sustainability and adoption, many organizations are offsetting their carbon emissions to counteract the carbon energy created by their usage. For example, global investment firm SkyBridge Capital has recently partnered with carbon credit provider MOSS Earth to purchase and im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely retire tokens representing <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 38,436 tons of carbon. Daniel Barile, partner and portfolio manager at SkyBridge, told Cointelegraph that the firm believes this action is good for Bitcoin adoption:<\/p>\n<blockquote><p>\u201cWe acknowledge that the carbon emissions associated with Bitcoin mining is a concern for many current and future potential Bitcoin investors and believe that \u2018greening\u2019 existing Bitcoin holdings ultimately broadens its potential investor base. Longer-term, we project that Bitcoin mining will be fully renewable by the end of the decade.\u201d<\/p><\/blockquote>\n<p>Barile further noted that the firm\u2019s recent transaction offsets the estimated historic carbon footprint of the Bitcoin currently held across its products, including within its multi-strategy funds and the First Trust SkyBridge Bitcoin Fund. <\/p>\n<p>SkyBridge\u2019s initiative to offset its greenhouse gas emissions came shortly after major cryptocurrency exchange Gemini announced a collaboration with Climate Vault, a nonprofit dedicated to helping companies achieve carbon neutrality. It\u2019s been <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.prnewswire.com\/news-releases\/gemini-offsets-bitcoin-carbon-emissions-launches-gemini-green-301319276.html\">noted<\/a> that through this partnership, Gemini will purchase carbon permits for nearly 350,000 metric tons of carbon as a first step to offset its usage of the Bitcoin network. In addition to SkyBridge and Gemini, Ninepoint Partners LP, a Canadian Bitcoin exchange-traded fund (ETF) issuer, also revealed plans to\u00a0offset the carbon footprint of its BTC ETF product. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Will_carbon_offsetting_spur_adoption\"><\/span>Will carbon offsetting spur adoption?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While offsetting carbon emissions appears to be a trend for crypto companies wanting to go green and promote adoption, questions regarding correct estimates of Bitcoin\u2019s carbon footprint remain. <\/p>\n<p>According to Barile, SkyBridge\u2019s ultimate goal is to offset the estimated historic carbon footprint of the Bitcoin currently held across all of its products. However, Barile mentioned that it is impossible to do this with precision: \u201cThe process of estimating the historic carbon footprint of Bitcoin is subject to numerous assumptions and limitations.\u201d<\/p>\n<p><strong><em>Related:\u00a0Crypto cowboys: Texas counties welcome Bitcoin miners with open arms<\/em><\/strong><\/p>\n<p>To put this in perspective, Andreas Homer, CEO of Aerial \u2014 a sustainability platform that uses a tool to track crypto carbon emissions \u2014 told Cointelegraph that Aerial calculates crypto carbon emissions by looking at wallet address to see what transactions have taken place on the blockchain associated with certain accounts. Those transactions are then linked with the estimated emissions per transaction:<\/p>\n<blockquote><p>\u201cOne BTC is equivalent to roughly 1 ton worth of emissions, or one carbon credit. With Ethereum transactions, we look at gas fees. In the case of Bitcoin, we have an estimate based on the quantity of the transaction.\u201d<\/p><\/blockquote>\n<p>Even with tools designed to calculate crypto carbon emissions, accuracy is fully dependent on data. Elaborating on this, Kumar noted that users of such tools should understand that the accuracy of the carbon emissions estimated by these solutions is likely dependent on the input data. In addition, such solutions depend on core assumptions underpinning the methodology followed in developing those tools. <\/p>\n<p>Although Kumar makes an important point, determining the carbon footprint of Bitcoin may be easier in comparison to other cryptocurrencies or computer data centers. Bill Tapscott, CEO of CarbonX \u2014 a GHG mitigation software projects company \u2014 told Cointelegraph that precision is relative without comparison:<\/p>\n<blockquote><p>\u201cCompared to computer centers, Bitcoin has the advantage of having a publicly observable hash rate for analysis; a highly specialized hardware with specific emissions factors while in use and after disposal; and clear incentive structures for miners \u2014 i.e., a direct correlation between mining and rewards which maximizes efficiency \u2014 whereas, in a datacenter, idle servers will be left spinning.\u201d<\/p><\/blockquote>\n<p>Tapscott remarked that the accuracy of Bitcoin\u2019s carbon footprint is much better understood because it has been studied compared to other digital assets and proof-of-work or proof-of-stake blockchains. While notable, Kumar added that another challenge facing the crypto industry is the evolution of the voluntary carbon credits market:\u00a0\u201cIt takes a long time to realize environmental value from the investments made in preventing forestry degradation, reforestation and other initiatives.\u201d<\/p>\n<p>Despite this, Kumar shared that KPMG expects companies to continue to lower the use of carbon credits to offset their crypto emissions and eventually transition to renewables, such as\u00a0solar power, to ensure green crypto. However, Kumar pointed out that regulatory initiatives are needed more than ever to encourage businesses to increase the speed at which they transition to green resources: \u201cThis would likely catalyze increased carbon offsets.\u201d<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/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\/measuring-success-offsetting-crypto-carbon-emissions-necessary-for-adoption\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Measuring success: Offsetting crypto carbon emissions necessary for adoption? &#8221; Debates regarding the amount of energy required to mine Bitcoin (BTC) have been ongoing. While tech pioneers such as Elon Musk have recently mentioned that the crypto industry is headed toward a greener future, some academic researchers have noted that mining BTC consumes\u00a0more power&#8230;<\/p>\n","protected":false},"author":1,"featured_media":321620,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDgvYTY2M2NmNTQtOTY1Yi00ZDcwLTkyNmMtZjNiNDk2ZDcxNjcwLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74989,74863,78717,74891,74872,75042,74355,117,76751],"class_list":["post-321619","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-mining","tag-cryptocurrencies","tag-energy-consumption","tag-ethereum","tag-green-technology","tag-mining","tag-adoption","tag-business","tag-sustainability"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/321619","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=321619"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/321619\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/321620"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=321619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=321619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=321619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}