Ark and Square say Bitcoin mining could be good for the environment
- Ark and Square presented a different opinion regarding the impact of Bitcoin mining on the environment.
- Both firms argued that the Bitcoin network could function as a “unique energy buyer”.
- ARK has been very active in crypto-related stock investments, and recently bought shares from Coinbase.
Cathie Wood’s Ark Invest and Jack Dorsey’s Square concluded research about the impact of Bitcoin mining on the environment. Their result was completely different from the public’s opinion about Bitcoin mining as it concerns the environment.
The research collaboration showed that Bitcoin mining incentivizes the use of renewable energy. In other words, Bitcoin mining could be good for the environment, despite the general view of its negative environmental impact.
Bitcoin network could act as a “unique energy buyer”
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In a tweet on Wednesday, Wood said their research findings revealed that with AI technologies and crypto mining, “the adoption of renewable energy is likely to accelerate!”
In contrast, some recent studies show that Bitcoin mining consumes a lot of energy due to the network of computers assembled to solve mathematical problems to create a token.
A particular analysis by Cambridge University indicates that the annual electricity consumption from Bitcoin (BTC) is more than the general electricity consumption of the whole of Argentina.
However, Ark and Square’s team are proving that the findings and discussions surrounding Bitcoin’s negative environmental impact do not tell the complete story. The two research teams collaborated in the research to buttress their point. They also published a memo, arguing that Bitcoin network functions could function as a “unique energy buyer” that can develop cleaner solutions.
Bitcoin can add more renewable energy to the grid
Brett Winton, who is Ark’s research director, added that crypto mining can increase investment in solar power. It will ensure that more renewable energy is available to the grid.
This is because, Bitcoin mining can produce more electricity from renewable carbon-free sources, according to the research.
ARK has invested heavily in crypto-related stocks, with the most recent coming last week when it purchased the recently listed Coinbase shares. And in a panel discussion, Wood opined that the market value of Bitcoin could go much higher than the $ trillion level it reached recently.