Bitcoin may be more environmentally friendly than meets the eye
One of the most frequent criticisms of bitcoin is that its environmental credentials are rather lacking. That is, it is widely known that bitcoin mining is an energy-intensive endeavor that is receiving increasing attention.
On the other hand, crypto enthusiasts and miners themselves are aware of the environmental survey, and some are taking steps to increase the use of renewable energy sources as the basis of the mining process. It can have positive implications for exchange-traded funds such as e.g Fidelity Crypto Industry and Digital Payments ETF (FDIG).
FDIG tracks Fidelity Crypto Ind & Digi Paym NR USD, and several of its 39 holdings are bitcoin miners, making the Fidelity fund a relevant play on that industry’s efforts to increase the use of green energy. Interestingly, some experts argue that bitcoin’s current carbon footprint is not as bad as some investors are led to believe.
“And for Bitcoin’s critics who point to Bitcoin, which is less than a billion dollars a month in total revenue. And, you know, probably you know, $200 a month in, in, in fossil fuel energy consumption. If it likes the maximum, maybe a hundred million dollars a month is the total global consumption of fossil fuel energy worldwide to say that coal plants stay open because of Bitcoin, Troy Cross, a fellow at the Bitcoin Policy Institute, said in a recent interview with Bitcoin Magazine.
Cross compares the political discourse currently directed at bitcoin mining to criticism of nuclear energy in the 1970s and 1980s, and argues that some policymakers aim to create narratives.
“We are not going to change our minds. Right. So we have to wait, we have to work with the next generation, Cross said in the interview. “And so these two in particular, but others are, you know, Elizabeth Warren, they’re trying to do the same thing for Bitcoin, cement a narrative and, and intertwine it with an identity so that it can’t be thrown away in pain, at the expense of your own, your own ego.”
Cross adds that the future intersection of bitcoin and sustainable energy sources is attractive, especially if governments and central banks limit interference.
“It’s just a matter of where and when and how these innovations happen, but the incentive structure to integrate Bitcoin with a. With a sustainable and abundant and abundant energy future that incentive structure is just too good. It can’t be held back very long by central authorities ,” Cross told Bitcoin Magazine.
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