According to climate tech VC Daniel Batten, the Bitcoin network has a 31:1 positive to negative-ratio.
A climate tech investor has created a rosy picture of the Bitcoin (BTC) network, claiming that BTC’s environmental benefits exceed its drawbacks by a startling 31:1 ratio.
Daniel Batten, a self-proclaimed philanthropist and environmentalist, declared in a Twitter conversation on Jan. 12 that “Bitcoin is perhaps the most important ESG technology of our time.”
The 31:1 positive impact ratio was estimated by researching and interviewing grid engineers, climate scientists, BTC mining engineers, methane abatement experts, and solar and wind installers, according to Batten.
The studies identified 21 ways Bitcoin may be environmentally beneficial and only five ways it could be environmentally detrimental.
According to Batten, the findings were “uncannily comparable” to those of the solar sector.
Many of the advantages concerned renewable energy grids and mining benefits, such as being the premier technology for responding to grid power demand from over and undersupply. Bitcoin mining farms can be turned on and off based on electricity demand.
Furthermore, BTC mining can be used to circumvent geographical limitations. Power curtailment is the intentional reduction of output below what could be produced in order to balance energy supply and demand, or due to transmission restrictions.
According to Batten’s results, there are additional advantages in creativity and methane reduction.
By employing otherwise wasted energy to power rigs, BTC mining can reduce vented landfill gas and flare gas emissions.
Network emission levels, e-waste creation, and the reopening of former fossil fuel sites were among the drawbacks. According to Batten, the environmental benefits clearly outweighed the drawbacks, and “Bitcoin mining’s rapid renewable adoption can motivate other industry sectors to follow.”
“We envisage Bitcoin mining playing a significant role in worldwide methane abatement,” he said.
The SCMP refuted the concept that Bitcoin was good for the environment on January 13 by estimating that BTC would account for 86.3 million tonnes of carbon dioxide emissions in 2022.
It did, however, recognise that Ethereum’s CO2 emissions decreased from 21.95 million tonnes in 2021 to 8,824 tonnes last year, according to Forex Suggest data. Last year, the Ethereum Merge and move to proof-of-stake cut network power consumption by 99.98%.