Greenpeace accuses Bitcoin mining companies of concealing energy information holds Wall Street accountable
A recent report published by Greenpeace has urged for accountability on Wall Street in relation to crypto mining, linking bitcoin mining to excessive global energy consumption.
According to Greenpeace, Bitcoin (BTC) mining has become a major industry dominated by traditional financial institutions that are acquiring and operating large-scale facilities, consuming substantial amounts of energy. In 2023, global Bitcoin mining utilized around 121 TWh of electricity, equivalent to the entire gold mining industry or a country like Poland. This resulted in significant carbon emissions, as these facilities consume electricity comparable to a small city.
Despite claims of Bitcoin being separate from the mainstream financial system, the report revealed that the industry is closely tied to traditional finance for funding and trading purposes.
The report emphasized the significant role played by traditional financial institutions in supporting Bitcoin mining. These companies rely on funding from banks, asset managers, insurers, and venture capital firms to establish and sustain their operations. The report identified Trinity Capital, Stone Ridge Holdings, BlackRock, Vanguard, and MassMutual as the top five financiers of carbon emissions from Bitcoin mining in 2022, collectively responsible for over 1.7 million metric tons of CO2 emissions.
Bitcoin mining companies like Marathon Digital, Hut 8, Bitfarms, Riot Platforms, and Core Scientific were found to generate emissions comparable to 11 gas-fired power plants.
The report highlighted Bitcoin’s environmental impact, stating that its environmental footprint in relation to its market value is comparable to beef production and gasoline from crude oil. It also noted that as the industry has expanded, Bitcoin’s environmental effects have worsened.
Bitcoin’s high energy consumption is attributed to its Proof-of-Work (PoW) consensus mechanism, which requires miners to solve complex algorithms using significant amounts of electricity. This has led to strain on electrical grids in the U.S. and globally, hindering efforts to meet climate targets.
Greenpeace argued that Wall Street, traditional financial institutions, and banks bear more responsibility for the energy disparity associated with Bitcoin mining than the miners themselves. The report claimed that these institutions incentivize miners to consume more energy through tax breaks and other benefits.
Greenpeace proposed that financial institutions should be more transparent about their environmental impact and encouraged Bitcoin miners to disclose data on their energy use and carbon emissions. They also suggested implementing a different consensus mechanism for Bitcoin to address its energy-intensive proof-of-work model and mitigate its environmental impact.
