As investors and enterprises engage with the cryptocurrency, there are increasing ESG concerns about involvement with Bitcoin and the current version of Ethereum.
However, one flaw in this argument is these figures are self-reported by Bitcoin miners that are fully aware of Bitcoin’s energy hungry stigma.
Another flaw is that even where sources are renewable, that energy might be capable of use for more productive purposes, like providing power for something else.
Ark is a major investor in the crypto sector as well as in Tesla, which has also associated itself with Bitcoin by holding significant amounts on its balance sheet.
But if blockchain and cryptocurrencies are going to lower the cost of payments, not just for payment providers but for consumers and merchants, we suspect that Square is one to watch.
The argument made by Square and Ark is that for renewables installations, instead of it just being a solar panel and a battery, a Bitcoin miner should also be added.
Given that solar and wind are variable sources of energy, and demand for energy is very peaked during the early morning and evening, there’s a need for battery storage.
The challenge is that when it comes to Bitcoin, greed is a major factor.
Assuming that happens again, the proportion of energy used for productive purposes could end up being 100% during those periods.
On the negative side, if the concept took off, this could dramatically increase the demand for semiconductors, for which there is currently a shortage of supply.