Bitcoin Mining Could Save the Planet, Says Climate Tech Investor
According to climate tech investor Daniel Batten, failing to consider Bitcoin-related investments in Environmental, Social, and Governance (ESG) portfolios is “gross negligence.” Batten’s view is based on two months of research that challenges the common belief that Bitcoin mining is terrible for the environment. He argues that Bitcoin mining can actually help slow down environmental disaster by reducing methane emissions.
Financial Incentives for Methane Capture
Batten explains that Bitcoin mining provides a financial incentive for capturing methane from landfills. Currently, about half of the world’s landfills have no option to sell their power back to grids. However, if an onsite customer were to utilize this power, it could revolutionize landfill operations.
Infrastructure Upgrades and Sustainable Energy Use
Batten’s research highlights the potential benefits of Bitcoin mining for landfills. It could lead to infrastructure upgrades that facilitate methane capture and utilization, making landfills more environmentally friendly. Additionally, his findings show that a significant number of Bitcoin mining companies primarily use renewable energy sources and hydroelectric power, contradicting claims of increasing emissions.
Methane Mitigation Opportunity
Methane emissions are a major contributor to climate change, and reducing them is crucial. Bitcoin mining’s high electricity consumption offers a unique opportunity to convert landfill gas into electricity, effectively mitigating methane emissions. Batten emphasizes the importance of making methane mitigation profitable for it to happen on a large scale.
Bitcoin Mining as an ESG Asset
Batten concludes that Bitcoin mining is potentially one of the most important ESG assets of our time. He believes it is the fiduciary duty of every ESG fund manager and investment committee to evaluate Bitcoin’s potential impact and consider it as part of their investment strategy.
Hot Take: Bitcoin Mining’s Environmental Benefits
Contrary to popular belief, Bitcoin mining may have significant environmental benefits. It can incentivize methane capture from landfills, lead to infrastructure upgrades, promote sustainable energy use, and mitigate methane emissions. These findings challenge the notion that Bitcoin mining is harmful to the environment. As a result, asset managers should consider Bitcoin-related investments in their ESG portfolios to fulfill their obligations and potentially contribute to environmental sustainability.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies. Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.