Per the report, strategies like tapping renewable energy sources and recycling waste heat to lower emissions are being adopted.
Top consulting firm KPMG has noted that Bitcoin aligns in many ways with environmental, social, and governance (ESG) principles.
The “Big Four” accounting giant agrees that despite widespread sentiment, Bitcoin is getting greener.
KPMG says Bitcoin ESG getting greener
Financial consulting firm, KPMG, has published a new 12-page report which offers insight into Bitcoin’s environmental, social, and governance (ESG) impacts and opportunities.
“Despite Bitcoin’s continued adoption, it continues to be a misunderstood technology and asset class,” it stated.
The report highlights several factors that point to the reduction of carbon footprint from Bitcoin mining. It noted that Bitcoin miners are seeking proximity to inexpensive renewable energy sources that can help reduce mining costs. With solar and wind being the most viable options, miners are creating additional revenue to help build renewable energy projects in rural areas.
KPMG researchers said that Bitcoin’s flexible computing load could assist in balancing electric grids by cutting demand during peak periods. They alluded to how miners used a demand response system to aid Texas during a winter storm in 2021.
In addition, the report emphasised that miners have turned to recycled energy sources for their activities. Recycling energy generated by specialised mining rigs to warm homes, buildings, and greenhouses. With this process, carbon-intensive heating fuels are replaced with beneficial thermal energy.
Also, emissions associated with Bitcoin are often exaggerated. The real number is quite low. It estimates that flared gas emissions from oil production in the US and Canada alone could sustain the Bitcoin network.
Illegal activity on the network is much lower than reported
On the social side, the KPMG report noted that illegal activity on the Bitcoin Network is not as common as it is made out to be. The network is responsible for big cross-border payments, fundraising, financial inclusion, and electricity access.
Money laundering accounts for 2-5% of the global gross domestic product, according to statistics from the United Nations Office on Drugs and Crime, but only 0.24% of Bitcoin transactions.
The KPMG study underlines how decentralized Bitcoin is in terms of governance. It noted that in order to change the procedure, all participants must agree, reducing the possibility of centralized control or manipulation.
Because Bitcoin’s governance laws cannot be altered without forking, “this results in a system that cannot be abused or misused by those in power or even individuals with ulterior motives due to its decentralization.”
Additionally, it cited the failure of earlier attempts to modify Bitcoin’s fundamental design as proof of the effectiveness of its governance mechanism.
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