Issue #001: The Narrative Is Shifting
Dear Subscriber,
Welcome to The Bitcoin ESG Forecast.
After months of study, we've unearthed new statistics about Bitcoin mining, which begs for reevaluating Bitcoin's role in ESG investment.
Scientific papers, industry reports, and news stories are increasingly validating Bitcoin's ESG role.
Bitcoin enthusiasts can now confidently advocate for Bitcoin's positive impact, equipped with data
NGOs, investors, and others curious about Bitcoin, but with unanswered ESG questions, can use this as a resource to get answers before they are reported in mainstream news channels
In the news
Bitcoin's environmental impact has been in the media spotlight again this last week.
For the first time, a major left-leaning news outlet picked up a study showing how Bitcoin mining can accelerate the renewable transition.
The next day they, along with the BBC and other outlets posted a verifiably false claim about Bitcoin water usage. The claim relies on a methodology that was debunked in 2018.
It's harder to prove Bitcoin's benefit to the grid, you need to understand both grids and bitcoin mining. But it's very easy to show people why the Water article was wrong: it had to recycle a debunked method to make its case.
For full story and sources read my post "A Tale of Two Articles"
A change in the ESG Narrative means a change in Bitcoin Market Cap
Zooming out, this latest water-fight is an anomaly. This year has marked a widely documented shift in the ESG narrative around Bitcoin. I document the 5 key events, and why this is bullish for Bitcoin in my latest Bitcoin Magazine piece.
New All Time Low
Bitcoin's emission intensity, a measure of emissions per unit of power, is now its lowest ever, dropping 18x faster than the banking sector over 4 years.
Top Picks
The last 3 months marked a pivotal shift in the conversation surrounding Bitcoin mining. Key players - institutions, media, and businesses - spotlighted research underscoring Bitcoin's environmental, societal, and economic influence. Let's dive into these developments.
In the Bitcoin and the Energy Transition report, researchers from the Institute of Risk Management argue that the convergence of Bitcoin mining and energy production is key to a sustainable, energy-abundant future.
Jirayr Kembikian, a Certified Financial Planner for the BTC Financial Advisors Network discusses embracing ESG principles by harnessing Bitcoin's potential to foster a greener planet and promote social inclusivity.
A new Cornell University publication in ACS Sustainable Chemistry reports how Bitcoin mining can help attract private investment into the renewable energy sector, providing a much-needed boost for renewable development
A report by KPMG concludes Bitcoin offers several benefits across the ESG framework, including stabilizing energy grids, reducing greenhouse gas emissions, and serving as a financial tool for those under authoritative regimes or experiencing inflation.
Third peer-reviewed publication in 6 months on Bitcoin mining's potential to contribute to the energy transition, perform demand response, increase grid flexibility, and perform methane mitigation.
A working paper co-authored by Brad Jones (former ERCOT CEO) examines Bitcoin mining's role in accelerating the global transition into renewables and in balancing the grid.
The Independent, a liberal UK major news source, joins Bloomberg and Financial Times' pro-Bitcoin ESG shift by publishing an article on how Bitcoin mining could boost the adoption of renewable energy.
Trailblazers
Pioneering companies that are at the forefront of exploring and actualizing the ESG impact potential of Bitcoin mining
Marathon Digital Holdings has partnered with Nodal Power for a pioneering 280kW project in Utah, using landfill methane to power Bitcoin mining. This initiative aligns with US environmental goals of reducing potent methane emissions from landfills, which currently see over 50% of U.S. landfills venting methane directly into the atmosphere.
In Brooklyn, an innovative bathhouse is powered by Bitcoin mining. Jason Goodman, the founder, is using Bitcoin mining as a creative solution for heating pools. While this is a one-off example, it shows the potential for Bitcoin mining to play a significant role in creating more efficient heating solutions in the future.
Tether is set to invest approximately $500 million into renewable Bitcoin mining, aiming to achieve 1% of the network's computing power by constructing mining facilities in Uruguay, Paraguay, and El Salvador. This is a step towards a more sustainable, socially responsible, and well-governed approach within the cryptocurrency industry.
Features
Below are some of the places where my discussions about the ESG potential of Bitcoin mining have sparked further conversation.
Bitcoin is GREEN Tech (Video)
Bitcoin leads in sustainable energy use, outpacing banking and gold mining
Bitcoin uses more sustainable energy than any other industry, data shows
Best, Daniel Batten
Follow me on X @DSBatten
Long form Bitcoin research: Batcoinz.com
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Thank you!
Great first post! We must also demonstrate intellectual honesty by calling out the new incentive to uncap stranded gas wells, of which there are millions around the world. I believe there will still be a net benefit for the climate, but so far I have not seen anyone mention this negative externality.