Climate tech VC argues that Bitcoin’s ESG positives outweigh its negatives 31:1

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A climate tech investor has painted a bright picture of the Bitcoin network, suggesting that its environmental benefits outweigh its drawbacks by a whopping 31:1 ratio.

On January 12, self-proclaimed philanthropist and environmentalist Daniel Batten claimed in a Twitter thread that Bitcoin is probably the most important ESG technology of our time.

According to Batten, the positive impact ratio of 31:1 was calculated by researching and interviewing grid engineers, climatologists, Bitcoin mining engineers, methane reduction experts, and solar and wind installers.

The results uncovered 21 ways Bitcoin (BTC) could be positive for the environment and only five ways it could be negative for the environment.

1/7

Environmentally, Bitcoin has a positive:negative ratio of 31:1

This means that Bitcoin is probably the most important ESG technology of our time.

As a fund manager, I would say there is gross negligence for an ESG investor not to factor this into their mix.

Here is a summary of the data

pic.twitter.com/Lbk0lWAA79

Daniel Batten (@DSBatten) January 12, 2023

Batten said the results were eerily similar to those from the solar industry.

Many of the positives were about renewable energy grids and the benefits of mining, such as being the leading technology to meet grid electricity demand in the event of oversupply or undersupply. Depending on power demand constraints, Bitcoin mining farms can turn on or off.

Additionally, BTC mining can be a solution for geo-restrictions. Power curtailment is a deliberate reduction in generation below what could be produced to balance energy supply and demand, or due to transmission constraints.

Innovation and methane reduction also have benefits, according to Battens’ findings.

BTC mining can be used to reduce landfill gas and flare gas emissions by using this otherwise wasted energy to power rigs.

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The handful of negatives included grid emission levels, e-waste generation and the opening of old fossil fuel sites. However, the environmental benefits far outweighed these disadvantages, according to Batten, who said:

The rapid and relentless adoption of bitcoin mining may inspire other industry sectors to follow.

We see Bitcoin mining can play a real role in global methane mitigation, he concluded.

Related: Bitcoin Could Become a Zero-Emission Network: Report

On January 13, the South China Morning Post argued against the idea that Bitcoin was good for the environment, reporting that BTC accounted for 86.3 million tons of carbon dioxide emissions in 2022.

However, he acknowledged that Ethereum saw its CO2 emissions drop from 21.95 million tons in 2021 to 8,824 tons last year, according to data from Forex Suggest. Ethereum’s move to proof-of-stake in September 2022 reduced network power consumption by 99.98%.

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