Environmental issues are very much at the helm of collective thought as we deal with more news that the climate situation is more of a climate crisis, one that reputable scientists are concerned we may not be able to stop. So, it makes sense that most processes are analyzed to see if they can be made more environmentally friendly. This goes for the way in which we interact with money, too, with cryptocurrencies being debated for and against in terms of their footprint. Bitcoin has grown from something only those in the know were aware of to something that everyone wished they’d invested in sooner. But is Bitcoin our solution to environmentally friendly finance?
Is Bitcoin Bad for the Planet?
Bitcoin is often cited as being fairly damaging to the environment. Indeed, it does use a huge amount of electricity to mine the neoteric codes. But, as many have pointed out – so does watching TV, surfing the internet, and eating excessive amounts of meat or food out of season. While Bitcoin may take up electricity, an entirely digital form of currency would remove any footprint that the production of physical money creates.
The major benefits of bitcoin include offering easier and cheaper cross-border transactions that are anonymous and make for more secure financial alternatives. Bitcoin presents many other benefits too. In a world where people are increasingly looking to have more control over their finances, as well as looking at ways in which they can invest their money themselves, Bitcoin could be the answer. Indeed, as the IG app shows, there are ways that you can invest in businesses from your phone that may help you choose which areas are given further investment, including those with pro-green policies.
Is Bitcoin more environmentally friendly than gold?
So, how does Bitcoin stack up in terms of its environmental footprint compared with other investment and financial options – specifically, gold? Most coins that are produced are actually created from zinc ore, which can also damage the planet through its production. With Bitcoin being a viable alternative for gold and more traditional money, could we move away to Bitcoin and then make the process of Bitcoin more environmentally friendly?
Expert investor Rupert Hargreaves claims that Bitcoin shares some of the qualities that made gold what it was, especially during the days of the gold standard before the Bretton Woods Summit during World War 2. As such, it could be seen that as we move into the future, gold might not necessarily be replaced, but could instead make room for an alternative, especially one that could make systems more environmentally friendly. Although, there are arguments that mining Bitcoin is costly in terms of energy consumption, and while it could be more ethical in how it allows those without a bank account greater access to finances, it may be detrimental ecologically.
The process of creating Bitcoin and offering it as an investment option has not been fully explored yet, meaning that we are just on the cusp of what it can do. There are definitely ways in which Bitcoin can be considered environmentally friendly, and these will need to be thoroughly looked into, especially when compared with current financial systems.
