Simply Bitcoin: Michael Saylor & Jack Dorsey Just Destroyed Bitcoin Climate FUD
Two contradictory trends have been at play in the last two years. The first is the rise of Bitcoin as a decentralized monetary alternative. The other has been the rise of the ESG movement. That places a considerable emphasis on the environmental friendliness of investments.
With Bitcoin’s proof-of-work model, it’s come under fire for its hefty energy use. However, Bitcoin mining uses far more green energy in its mix than compared to the overall economy as a whole.
Now, the Bitcoin mining council, led by MicroStrategy (MSTR) CEO Michael Saylor and Block (SQ) CEO Jack Dorsey, has released more data on the subject.
Their conclusion? That Bitcoin’s proof-of-work model is not only green, but encourages more green energy use.
The alternative method for cryptocurrencies, proof-of-stake, uses less energy to secure the network, but also makes it easier for one or a few small parties to control.
And, fossil fuel companies are turning to Bitcoin mining as a way of utilizing energy that would otherwise go stranded or to waste. The end result is more wealth creation rather than destruction.
As with many Bitcoin fears over the years, this latest concern is likely to fade out over time. Expect it to be replaced with a different one.