Jack Dorsey's Square and Cathie Wood's Ark suggest bitcoin mining encourages the adoption of renewable energy and isn't environmentally-damaging | Currency News | Financial and Business News
Francois Mori/AP/ ARK Investment Management
- Research from Square and Ark Invest argues bitcoin could be a key driver of renewable energy use.
- A new memo indicates the cryptocurrency mining process could enable cleaner energy solutions.
- Billionaire Elon Musk seemed to accept the research is "true."
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Teams from Jack Dorsey's Square and Cathie Wood's Ark Invest produced the results of a research collaboration on Wednesday that aims to show how bitcoin mining incentivizes the use of renewable energy.
Star stock-picker Wood said in a tweet their findings disprove the myth that the mining process is damaging to the environment. "Instead, as crypto mining, energy storage, and AI technologies converge, the adoption of renewable energy is likely to accelerate!" she said.
A number of recent studies indicate bitcoin mining consumes immense energy, as the matrix of computers that run its software are dedicated to solving complex calculations that create new tokens. Analysis by Cambridge University shows bitcoin consumes more electricity annually than the whole of Argentina, according to the BBC.
But research from Square and Ark seems to indicate the conversation around bitcoin's negative environmental impact only tells half the story. A memo they published shows bitcoin network functions could act as a "unique energy buyer" that helps develop cleaner solutions, so that bitcoin mining and trading relies on clean energy sources and helps make these projects profitable.
The memo narrates a seemingly complex explanation of how clean-tech forms of energy, such as solar and wind power, can constitute a "green grid" ecosystem that generates more electricity from renewable carbon-free sources.
The key highlights from the memo are:
Dorsey also tweeted about the research, stating: "Bitcoin incentivizes renewable energy."
While many of his followers seemed to disagree with the statement, billionaire Elon Musk, whose electric vehicle maker Tesla recently invested $1.5 billion in bitcoin, responded to Dorsey's post with: "True."
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