Bitcoin satisfies key ESG considerations and can continue to do so despite the controversy over its use, according to a report by KPMG published Thursday.
Bitcoin is frequently depicted as being environmentally unsound and ripe for misuse through illicit transactions, but that’s not the whole story, KPMG says in the study. In fact, the cryptocurrency supports renewable energy infrastructure and provides secure transactions.
The computer hardware used in Bitcoin mining uses enormous amounts of electricity, raising environmental concerns at a time when institutions are pursuing net zero emissions. But, KPMG notes, Bitcoin miners are incentivized to pursue cheaper energy sources. Miners are turning to renewable energy sources like under-utilized hydro, wind, and solar power sources where they can adjust their consumption based on periods of excess supply or low market demand. They’re also tapping vented methane, a potent greenhouse gas for power. Miners are beginning to recycle and repurpose the heat produced by their hardware, turning wasted energy into an additional revenue stream by heating buildings and homes.The cryptocurrency’s secure framework has allowed it to replace cross-border payments, a boon for families in developing countries who depend on inbound remittances and previously faced high transaction fees and logistical challenges.
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