According to Squawk Box author and co-author Andrew Ross Sorkin, investing in bitcoin can generate setbacks from environmentally conscious investors.

In an article published in the International New York Times Worldwide, Sorkin referred to statements by Lawrence Fink, CEO of BlackRock – the world’s largest asset manager – that his company will make all future investment decisions based on “how they plan to tackle the climate problem. ”

Sorkin cited PayPal, Square and Tesla as examples of bitcoin buying companies with strong environmental initiatives. But such initiatives are fundamentally at odds with Bitcoin’s inefficient way of making transactions that increase the carbon atmosphere:

“All of this raises an important question: Does the investor’s transition to companies that value environmental, social and governance issues existentially threaten Bitcoin’s success?”
In 2009, Sorkin wrote a book about the banking crisis on Wall Street, Too Big to Fail, which was on the New York Times bestseller list for six months, and was filmed in 2011.

Tesla came under fire in February after Ben Der, CEO of Osmosis Investment Management, an investor in sustainable products, told Reuters that the company should “focus on measuring and uncovering the full range of environmental factors in its markets” in light of its Bitcoin purchases . Tesla demands more transparency on sustainability issues, the statement said:

“(We hope) that if they continue to buy or actually start mining bitcoin, they will include relevant data on energy consumption in this information.”
According to the third global standardized study on the origins of cryptocurrencies, published by the University of Cambridge, up to 39% of all mining confirmations worldwide are made using renewable energy sources, most of which are hydropower. Other estimates put the figure higher.

About two-thirds of all Bitcoin mining is in China. While much of this is done using renewable energy sources, coal is still the largest energy source in the country. Mining in Inner Mongolia has recently been curtailed for failing to meet government standards for energy efficiency testing.

Despite attempts to harness green energy, Bitcoin is currently suffering from a “large carbon footprint” problem, as Forbes described in a recent article. In February, a hacker known as the “green hacker” called for the destruction of Bitcoin on the grounds that it causes great damage to the environment.

Since the Bitcoin network uses as much energy on a daily basis as a medium-sized country, some companies, such as Jack Dorsey’s Square, have allocated money to green bitcoin mining projects to reduce the dependence of cryptocurrencies on fossil fuels.

Source: CoinTelegraph