Following concerns from Tesla CEO Elon Musk about Bitcoin’s energy consumption, global asset manager Ark Investment Management said the concerns were “false”. Referring to its research using real-world data, the investment firm stressed that “the impact of Bitcoin mining could have a positive impact on the environment.”
Bitcoin mining could help the environment
Investment Management (Ark Invest) released a notice on Monday in response to Tesla and its CEO Elon Musk’s comments on Bitcoin’s energy consumption. The electric car company has stopped accepting Bitcoin for payments, citing environmental issues. “We are concerned about the rapidly increasing use of fossil fuels for bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Tesla wrote.
Ark Invest analyst Yassine Elmandjra wrote:
In our view, the concerns about Bitcoin’s energy consumption are wrong. Contrary to consensus thinking, we believe that the effects of Bitcoin mining could have a positive impact on the environment.
The analyst added, “Using real world data, we are showing how mining can affect the amount of renewable energy available on the grid by converting intermittent electricity resources into base load generation through energy storage.”
This is not the first time Ark Invest has tried to explain Bitcoin’s energy consumption. The company recently released A report collaborated with Jack Dorseys Square Inc. arguing that “Bitcoin is the key to a bountiful, clean energy future.” As explained in the report, the analyst stated:
We show that without Bitcoin mining, renewable energies could only meet 40% of the grid’s needs, but 99% with the commercial “subsidies” associated with Bitcoin mining.
While Musk and Tesla have voiced their concerns about Bitcoin’s environmental impact, they both said they haven’t sold theirs BTC despite speculation that Tesla might have this over the weekend.
Elmandjra went on to explain that Tesla’s decision to ditch Bitcoin as a payment method “appears to have been triggered by private equity firm Greenidge’s plans to revive a coal-fired power station to mine Bitcoin.” He noted that “Elon Musk referenced the announcement in a tweet.”
However, the analyst noted:
Greenidge then made it clear that his facility not only runs on natural gas and feeds the grid, but has also bought carbon credits to offset the emissions.
Do you agree with the Ark Invest analyst on the environmental impact of Bitcoin mining? Let us know in the comments below.
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