Issue #005: Hello Mid-50s
Dear subscriber,
Welcome to The Bitcoin ESG Forecast #005.
2500 years ago, Sun Tzu wrote the Art of War. Today we look at the art to fighting Bitcoin FUD. But first, yet another All Time High for Bitcoin mining sustainability.
This month has seen another milestone for the Bitcoin network, the network is now 55% powered by sustainable electricity. Up a full 0.5% since last month. Three factors drove the increase: new hashrate from
Ethiopia (all renewable energy)
Unblock Global (methane mitigation in Argentina)
Cleanspark
I cover these in detail in the Trailblazers section.
Responding to Media Critics of Bitcoin
This month I rebutted three articles on Bitcoin mining’s environmental impact. Almost all journalist critics committed the same three mistakes
citing “experts” who aren’t (have not researched how Bitcoin mining, grids and renewable energy interplay)
conflating “it uses a lot of energy” with “it’s environmentally harmful”
promising to look at the environmental impact of Bitcoin, but then only appraising negative impacts.
Let's start with this Recharge News piece by Cosmo Sanderson. Sanderson passes the mic to Ben Hertz-Shargel who claims there's a finite amount of clean energy that can be deployed at any one time and we should ask ourselves whether we can afford to power Bitcoin mining with this energy. This is overly simplistic because renewable energy is often wasted since it is frequently produced at the wrong time and/or in the wrong place. Bitcoin mining is ideally suited to use that wasted energy that others can’t. → Full Rebuttal
Another one is this piece on The Verge by Justine Calma following US Department of Energy's interest in collecting data on crypto miners' electricity use due to criticism from environmental advocates. Calma writes that the Bitcoin miners are responsible for the resurrection of fossil fuel plants in New York, a claim that's wrong. Greenidge, the accused crypto-mining power plant, reopened to deliver power to the grid. I covered this development in the rebuttal of Earthjustice’s Bitcoin report.
Finally, there was this TechTarget article by Mary K. Pratt where she promises to explain the environmental impact of Bitcoin mining but ends up giving a one-sided account that ignores the increasing body of evidence of the positive externalities of Bitcoin mining. She also bases her arguments on Alex de Vries' methodologies which have been proven unreliable several times.
I include these rebuttals in this newsletter because its important we recognise the common attack vectors, understand why they are wrong or illogical, and know how to counter them.
On that theme, spare a few minutes to read Margot Paez's excellent (and funny) rebuttal of UN University's misrepresentation of Bitcoin's energy use and environmental impact data. Margot put in many hours to debunk what she describes as a subpar academic research, so we don’t have to. Thanks Margot.
Trailblazers
We continue to see growth in sustainable Bitcoin mining globally. This time we have some insider information on a couple of developments that have yet to be publicly announced.
Luxor Mining has confirmed with me they're harnessing 200MW power 95% hydro, 5% solar, and wind, in Ethiopia for Bitcoin mining. This is happening while Ethiopia becomes a preferred location for Chinese Bitcoin mining firms to set up shop since their government cracked down on crypto mining operations.
Unblock Global has achieved 15MW of flare gas mining in Argentina. The climate tech company with a mission to eliminate flaring in Latin America recently raised $15 million from companies led by Crusoe Energy, to use flared gas from Argentina's Vaca Muerta, to power its operations.
CleanSpark, which develops infrastructure for sustainable Bitcoin mining has increased its mining operations’ hashrate from last December's 10.08 EH/s to the current 12.5 EH/s.
These three events have brought about a new ATH for sustainable energy use.
Top Picks
An independent report by Tikula Research Network, Lusaka, Zambia, has concluded that Bitcoin mining can improve access to electricity in rural Africa: "The highest potential for Bitcoin mining in Africa lies in mini-grids. This would reduce pressure on the main grid, which is already highly constrained in most African countries."
In the last year there were 3 independent reports and 5 peer reviewed publications endorsing Bitcoin mining as a pro-ESG asset. That’s a weight of evidence. What it means is, there is no longer any excuse for regulators and journalists to ignore Bitcoin mining’s positive environmental externalities, when assessing net environmental impact in their articles and policies.
Top Features
If you missed this one, I got to discuss with Bram Kanstein on the Bitcoin for Millennials podcasts, how challenging your beliefs and ego, which amounts to intellectual honesty, is key in driving Bitcoin adoption.
In this feature we talk over
What meditation has to do with Bitcoin
Why the energy "experts" who say Bitcoin was bad for the environment are not experts at all
Why Cambridge deserve both credit and criticism
Housekeeping Notes
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See you next month.