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Bitcoin is now at the center of an environmental controversy. Greenpeace points out the harmful impact of BTC mining. Even more worrying, the NGO accuses Wall Street of financing this polluting industry.
Bitcoin and its Environmental Impact
A new report from Greenpeace highlights the significant environmental impact of BTC mining. It is said to be comparable to the electricity consumption of a country like Poland.
Bitcoin mining is a necessary process for creating new units of this virtual currency. It relies on a complex and energy-intensive computer system called “proof of work” or (PoW). It consumes large amounts of electricity, thereby generating considerable greenhouse gas emissions.
The Role of Wall Street in Financing Bitcoin
Greenpeace also accuses Wall Street and traditional financial institutions of playing a crucial role in funding this energy-intensive industry.
According to the NGO, large banks and asset managers are heavily investing in Bitcoin mining companies. They provide them with the necessary capital to build and operate vast computer infrastructures.
The report notes that in 2022, only five financial institutions were responsible for more than 1.7 million tons of CO2 emissions related to BTC mining. These are:
- BlackRock,
- Vanguard,
- Trinity Capital,
- Stone Ridge Holdings,
- MassMutual
The Solutions Proposed by Greenpeace
Faced with this alarming situation, Greenpeace advocates for greater transparency on the part of Bitcoin mining companies. It also calls for stricter regulation of the BTC mining industry to encourage the adoption of more sustainable practices.
Finally, Greenpeace suggests changing the Bitcoin consensus mechanism. The goal: to significantly reduce energy consumption and greenhouse gas emissions related to Bitcoin mining.
It’s a fact: Bitcoin mining poses a major environmental challenge. Competent authorities will need to seriously address the issue.
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Je m’appelle Ariela et j’ai 31 ans. J’oeuvre dans le domaine de la rédaction web depuis maintenant 7 ans. Je n’ai découvert le trading et la cryptomonnaie que depuis quelques années. Mais c’est un univers qui m’intéresse beaucoup. Et les sujets traités au sein de la plateforme me permettent d’en apprendre davantage. Chanteuse à mes heures perdues, je cultive aussi une grande passion pour la musique et la lecture (et les animaux !)
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.