The Ultimate ESG Asset: Bitcoin
In a recent X-thread (formerly Twitter) on Bitcoin’s environmental, social and governance (ESG) impact, Daniel Batten, co-founder of CH4 Capital and a leading BTC environmentalist, made a compelling case for Bitcoin as the ultimate ESG asset. Batten presented four charts to highlight Bitcoin’s sustainability compared to other major industries.
Renewable Energy Dominance
Batten began by emphasizing how BTC mining has become the “single most sustainably-powered global industry in the world.” According to data, 52.6% of the energy used to mine Bitcoin comes from renewable sources. In contrast, other industries lag behind, with the banking sector at 39.2%, the industrial sector at 32.0%, agriculture at 19.2%, the gold industry at 12.8%, and the iron & steel industry at just 9.8%.
Consistent Emission Levels Amidst Growth
The second chart highlights Bitcoin’s unique ability to maintain its emissions despite significant growth. Over the past four years, Bitcoin’s network hash rate has surged by 475%, its price increased by 163%, and the total number of users grew by 289%. Yet, its emissions decreased by -9.4%. Batten noted that this is something that no other industry has accomplished.
Lowest Emission Intensity
According to Batten’s third chart, Bitcoin has halved its emission intensity within four years and now has the lowest emission intensity among major global industries. Bitcoin’s emission intensity stands at 299 g/KWh, significantly lower than industries like iron & steel (856 g/KWh), agriculture (725 g/KWh), gold (679 g/KWh), industrial (502 g/KWh), and banking (464 g/KWh).
Decentralized Energy Source
The final chart demonstrates Bitcoin’s diversified energy composition, with hydro leading at 23.6%. Bitcoin’s decentralized nature frees it from relying solely on the 36.7% coal-powered global grid. Batten emphasized that Bitcoin mining is the only major industry where fossil fuel is not the primary source of power.
False Information Continues To Circulate
Batten addressed the need for a deeper understanding of Bitcoin as recent campaigns and academic research have propagated potentially misleading narratives. While acknowledging the strengths of a recent MIT study on mining, Batten raised concerns about inconsistencies, outdated data, and non-representative datasets, emphasizing the importance of more exhaustive and accurate research models.
At press time, BTC traded at $26,102.
Featured image from Shutterstock, chart from TradingView.com
