Sun. Dec 3rd, 2023

• ESG funds require three things before they will invest in Bitcoin projects.
• The Cambridge Centre for Alternative Finance (CCAF) study on Bitcoin environmental impact underestimates the amount of sustainable Bitcoin mining going on.
• We can be confident that the actual sustainable energy usage is at least 52.6% of Bitcoin mining’s total energy use.

The Need for Sustainable Energy Usage

Whatever your position on ESG investment, it’s undeniable that these investments are soaring, with an estimated $10.5 trillion targeted to be invested in the U.S alone. For Bitcoin adoption to become mainstream, these ESG funds must feel comfortable that Bitcoin is a net positive to the environment.

Inaccuracies in CCAF Study

At present, ESG investors largely don’t feel comfortable investing in Bitcoin due to the Cambridge Centre For Alternative Finance’s (CCAF) study which reported that only 37.6% of Bitcoins energy consumption was sourced from sustainable sources – a figure which has been met with reluctance and doubt by many investors and environmental groups alike.

What Would Bring About ESG Support?

For ESG funds to get behind Bitcoin there needs to be empirical data showing three things: how much the CCAF study underestimated sustainable energy usage; a macro trend towards more sustainable energy usage; and ultimately that Bitcoin is quantifiably reducing emissions and pollution levels .

Bitcoin Mining Council Study vs CCAF Study

The study conducted by industry body The Bitcoin Mining Council (BMC), which found 58.9% of Bitcoins energy consumption was sourced from renewable sources has met similar scepticism as the CCAF study due its origin as an industry body- however this access gives BMC access to real-time data not available elsewhere and thus makes it more reliable than other studies conducted independently such as those published by Alex de Vries – who’s work has since been debunked by bitcoin magazine .

Confidence In Sustainable Energy Usage Figures

Despite both studies being treated with scepticism, we can be very confident that the actual level of sustainable energy used in Bitcoins mining operations is at least 52.6%. This conclusion comes from applying traditional financial analysis techniques such as Monte Carlo simulations combined with real-time data from miners located around the world – leading us one step closer towards global acceptance of bitcoin.

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