Bitcoin can help mitigate climate change emergency

The analysis from Nigel Green of deVere Group comes as extreme temperatures are breaking records worldwide. Both the US and China saw the mercury crossing 50C on Sunday and southern Europe is bracing for the all-time records to be broken this week.

He says: “Amidst the global climate change emergency, a perhaps surprising contender is emerging as a potential solution: Bitcoin.

“Contrary to belief in some quarters, this revolutionary digital currency has the capacity to drive positive change and aid in the fight against climate change.

“With its unique characteristics and transformative potential, Bitcoin is positioned to play a crucial role in transitioning to a more sustainable and eco-friendly future.”

The deVere CEO continues: “An often-overlooked point is that Bitcoin mining (the process of verifying and adding transactions to the Bitcoin blockchain while also creating new Bitcoins) could speed up the transition from fossil fuels to renewables.

“Clearly, clean energy is the way forward, but their sources are sometimes irregular and there’s not enough storage capacity for when these sources generate excess energy.

“Bitcoin miners, who need huge amounts of energy, could act as major buyers of last resort, providing substantial profit for investment and expansion. This would then enhance the renewables supply, which would go on to bring down prices for consumers and further drive demand.”

Bitcoin’s rise in popularity has resulted in increased wealth accumulation for early adopters and cryptocurrency enthusiasts. Many individuals within the Bitcoin community are leveraging their newfound wealth to fund sustainable projects and initiatives.

“This philanthropic approach can lead to significant investments in renewable energy, clean technology, and other climate change mitigation efforts,” notes Green.

He also stresses the promotion of financial inclusion. “Bitcoin has the potential to enhance financial inclusion for underserved populations around the world. By providing individuals with access to digital currencies and blockchain-based financial services, Bitcoin can empower the unbanked and foster economic growth in marginalised communities.

“This increased access to financial resources enables individuals to invest in sustainable practices and contribute to climate change mitigation.”

He concludes: “While no monetary system or investment is perfect, and the crypto ecosystem can still improve in many ways, the argument that digital currencies cannot necessarily form part of a climate change mitigation strategy does not stand-up to scrutiny.

“Indeed, as the emergency intensifies, we must use every weapon at our disposal to fight it – and Bitcoin is one of them.”