Daniel Batten explains how Bitcoin mining encourages the use of sustainable energy.
The term ESG refers to the environmental, social and governance issues that an organisation may choose to address as part of its sustainable strategy. Daniel Batten, co-founder of CH4 Capital and researcher, argues that Bitcoin is the biggest existing example of ESG investing.
Hydropower is the main source
Batten presented his conviction in an X thread, pointing out that the emissions associated with the generation of the electricity used to mine Bitcoin will remain the same every four-year cycle, regardless of the growth seen in hash rates, users and price. This would be an achievement that no other industry has ever managed to achieve.
Furthermore, Batten highlighted the fact that the main source of energy for Bitcoin is hydropower. Mining, the researcher points out, to a large extent is not anchored to the traditional electricity grid that is predominantly powered by coal, making Bitcoin the only major industry where fossil fuels are not the main source of energy.
It is undeniable that mining could represent a real revolution in the power grid industry. The future implications of this may lead to a wider recognition of Bitcoin not only as a financial product, but also as a tool for sustainability.
