International multinational professional services firm KPMG has just released a report on “Bitcoin’s role in the ESG imperative.”
Bitcoin ESG Improving
The accounting giant has provided a report which offers an overview of Bitcoin’s environmental, social, and governance (ESG) impact and opportunities. “Despite Bitcoin’s continued adoption, it continues to be a misunderstood technology and asset class,” it stated.
On the environmental side, the report acknowledges concerns over Bitcoin’s energy use for mining. However, it highlights strategies miners are using to lower emissions, like tapping renewable energy sources and recycling waste heat.
Bitcoin’s energy usage is not the primary issue, it stated. The emissions associated with producing that energy are often cited as a cause of concern. However, the numbers have fallen dramatically.
Energy consumption comparison to Bitcoin emissions. Source: KPMG
Furthermore, capturing methane from oil production and landfills for mining can also lower greenhouse gases.
Despite its energy usage, KPMG concluded that Bitcoin could aid the renewable energy transition.
On the social side, Bitcoin facilitates illegal activity less than commonly believed it stated. BTC has also provided value for cross-border payments, fundraising, expanding electricity access, and financial inclusion.
Regarding governance, the report emphasizes Bitcoin’s decentralized nature. It stated that protocol changes require consensus among participants, limiting risks of centralized control or manipulation.
Moreover, it mentioned the failure of past efforts to alter Bitcoin’s core structure as evidence of the strength of its governance model.
The report concluded that Bitcoin’s reputation will improve as it continues developing new ways to deliver value across ESG objectives.
BTC Mining Outlook
In late July, Presidential Candidate Robert F. Kennedy Jr. said that Bitcoin’s “environmental arguments should not be used as a smokescreen to curtail freedom to transact.”
His comments came in response to a report on the symbiotic relationship between Bitcoin and renewable energy.
The average hash rate for the Bitcoin network is currently near peak levels at 394 exahashes per second (EH/s), according to BitInfoCharts data. This is good news for network security, but it makes mining much harder.
Bitcoin Mining Hashrate Chart. Source: BitInfoCharts
Furthermore, the mining difficulty metric has dropped slightly from its recent peak but remains high at 52.3 T. Moreover, mining profitability or hash price remains depressed at $0.071 per terahash per second per day.