Bitcoin consumes less electrical energy than the traditional banking system and gold. More than 75% of Bitcoin miners use renewable energy sources such as hydroelectric ones.
British banks in London have financed projects that emit 805 million tonnes of carbon dioxide (CO2) per year. A recent study by environmental groups Greenpeace and the World Wide Fund for Nature (WWF) revealed that information.
As if they were a country, London’s set of financial institutions rank ninth in CO2 emissions in the world. According to the report from both NGOs dedicated to the preservation of the environment, they exceed those of Germany and Canada.
The study tracked the loans and investments that London banks have made. It indicated that financial institutions impact 1.8% more than the annual CO2 emissions of the entire UK.
Some of the most CO2-emitting projects that London bankers have funded are insurance and security services. According to the Rainforest Action Network, 65% of fossil fuel consumption falls on these activities.
CO2 Emissions Could Be Higher than the Study Indicates
However, the study warns that greenhouse gas emissions could be even higher. The reason for this is that the protocol that they use does not include the third-party service in the funded entities.
The researchers used the Partnership for Carbon Accounting Financials (PCAF) protocol guidelines. Their objective was to estimate the CO2 emissions of loans and investment activities in the institutions under consideration.
The electricity consumption reports from the institutions that have received financing provided information on emission levels. However, the analysts also took into account emissions based on physical operation and economic activity.
They also turned to third-party data providers or service providers when the entities did not have public information. They not only measured electricity consumption but also took into account the region to determine the type of source used.
According to a study by the Rainforest Action Network, British banks are not the only ones that have invested in industries that use fossil fuel. These researchers found that the 60 largest banking institutions in the world have invested USD 3.8 million in them, even after the 2015 Paris Agreement.
Over 75% of Bitcoin Miners Use Clean Energy Sources
Bitcoin certainly generates high power consumption to keep the network secure and efficient. However, it is false that it uses a huge amount of fossil energy and contributes to the emission of CO2. Unfortunately, Tesla’s announcement of the suspension of Bitcoin as payment for its electric cars damaged the image of cryptocurrencies.
According to some bitcoiners, Elon Musk may not have researched before saying that they harmed the environment. According to a 2020 report from the University of Cambridge, 76% of Bitcoin miners use renewable sources.
Cryptocurrency miners generally use hydroelectric plants, except for China, where there is high consumption of coal. However, 62% of the world’s cryptocurrency miners use power from dams, according to a September 2020 estimate.
In February 2021, Yassine Elmandjra, the financial analyst at ARK Investment Management, spoke about Bitcoin mining. She said that it is more positive for the environment than traditional banking and gold.
By Alexander Salazar
