Market Lab Report - Bitcoin’s Carbon Footprint vs. Elon

Published:

14 May 2021 07:06 ET

I've received numerous questions across multiple platforms.

Taking the 50,000 foot view, Elon is wrong but is probably intentionally wrong on bitcoin's energy consumption/carbon footprint since he just applied to the EPA so has to take a 'green' position. Tesla is seeking entry into the U.S. renewable fuel credit market. Elon is great at playing politics.

That said, a number of coal plants have gone back online to mine bitcoin which will increase bitcoin's carbon footprint. This naturally concerns Elon. Nevertheless, this would still be a small increase in the carbon footprint when taking into account the whole picture.

Bitcoin gives all human beings property rights while offsetting global inflation and currency devaluation. This not only decimates the tens of trillions of dollars in damage done each year by central banks, but the productivity gains are massive. The fossil fuel consumption issue is minuscule by comparison. And bitcoin wins there too.

I discussed this more fully in a piece I wrote in October 2020:

https://www.virtueofselfishinvesting.com/reports/view/crypto-report-10-10-19-bitcoins-energy-consumption-vs-fossil-fuels-vs-nuclear-power

and

https://www.virtueofselfishinvesting.com/faqs/answer/issues-with-decentralized-technologies-1-will-it-overtake-centralized-systems-2-bitcoins-energy-consumption

Here are some great recent summaries of why bitcoin's energy consumption actually creates less waste and a smaller carbon footprint compared to conventional methods. The first link below is the most recent and arguably relevantly detailed post:

https://twitter.com/dergigi/status/1392826448017346561?s=20

https://twitter.com/SBF_Alameda/status/1392724490933575683?s=20

https://www.coindesk.com/the-last-word-on-bitcoins-energy-consumption

https://twitter.com/gladstein/status/1351221708775186434?s=20

https://twitter.com/danheld/status/1351235080103096331?s=20

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