Sonisphere

• The Cambridge Centre for Alternative Finance (CCAF) study underestimates the amount of sustainable Bitcoin mining going on.
• ESG investors largely don’t feel comfortable that Bitcoin is a net positive to the environment.
• The conversation about ESG funds getting behind Bitcoin cannot progress, leading to user adoption stalling and environmental groups lobbying governments to regulate Bitcoin mining in a punitive manner.

The Understated Impact of Sustainable Energy Use in Bitcoin Mining

The Cambridge Centre For Alternative Finance’s (CCAF) study on Bitcoin’s environmental impact underestimates the actual amount of sustainable energy used in mining operations. According to the CCAF study, only 37.6% of energy use is sustainable, while another independent research conducted by the Bitcoin Mining Council (BMC) found that 58.9% of energy use is sustainable.

Why This Matters

ESG investment has grown exponentially and is estimated to reach $10.5 trillion in the U.S., making it an important factor when considering whether or not to invest in Bitcoin projects. Currently, ESG investors are wary of investing due to doubts about its environmental impact and question how accurate the CCAF study is compared to the BMC one. As a result, user adoption has stalled and environmental groups are lobbying governments to impose punitive regulations on Bitcoin mining operations.

What Would It Take To Gain Support from ESG Funds?

Before any meaningful progress can be made with regards to ESG support for Bitcoin projects, three requirements must be met: independent empirical data demonstrating how much energy usage is actually sustainable; evidence that macro trends depict sustainable energy use increasing over time; and proof that overall energy usage by miners is decreasing quantitatively.

My Latest Research

My latest research aims to provide more clarity on this issue by looking into what it would take for ESG funds to gain comfort in supporting investments related to Bitcoin mining operations specifically around its environmental impact. After analysing various sources of data including real-time information from miners themselves I am confident that at least 52.6% of all energy used by miners come from renewable sources – significantly higher than previously estimated by both CCAF and BMC reports alike..

Conclusion

It is clear that having an accurate understanding of how much renewable energy actually powers bitcoin mining operations is essential for gaining trust from critical stakeholders such as ESG funds and government bodies alike if we want widespread user adoption for this technology – something which will ultimately benefit us all environmentally speaking as well as economically!

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