Ark Invest defends the environmental impact of Bitcoin 

Ark Invest defends the environmental impact of Bitcoin - MW HT336 Cathie ZG 20191015123310 e1613041601589Ark Invest, an investment management firm that is also a large investor on Coinbase, has questioned Elon Musk's position that Bitcoin is bad for the environment.

“In our view, concerns about Bitcoin's energy consumption are misleading. Contrary to popular belief, we believe that the impact of Bitcoin mining could become a good thing for the environment, ”Ark Invest analysts said in a note from their research published just the day before yesterday.

Musk abandons Bitcoin because he is not an environmentalist

The note comes just a week after Tesla CEO Elon Musk turned the tide on the flagship cryptocurrency, tweeting on May 12 that the electric vehicle maker would stop accepting Bitcoin as a means of payment, due to climate concerns. .

"We are concerned about the rapid increase in the use of fossil fuels caused by the mining and transactions of Bitcoin, particularly coal, which has the worst emissions of any fuel," Musk said. Adding that although he believes in cryptocurrencies in general, progress cannot advance at the expense of the environment.

However, Ark's team said that, through real data, they demonstrated how “mining could impact the amount of renewable energy supplied to the grid, turning intermittent energy resources into baseload generation via the storage of power".

Ark Invest and Square on Bitcoin

This year, Ark Invest provided the data used in a white paper published by Square as part of its Bitcoin Clean Energy Initiative.

The white paper stated that Bitcoin mining could be an opportunity for the world to switch to renewable energy. To support this view, Square said Bitcoin miners are "location independent" and only require an internet connection to function.

According to data from May 18, however, nearly two-thirds of all Bitcoin miners are based in China. The white paper also assumes that since renewable energy sources are generally seen as cheaper than fossil fuels, Bitcoin miners prefer renewable energy sources.

According to the University of Cambridge, however, only 39% of the Bitcoin network is powered by renewable energy. Last month, a coal mine in China flooded, causing Bitcoin's hash rate to drop to figures not seen since November 2020, demonstrating the network's dependence on fossil fuels.

Ark Invest has invested a lot in companies exposed to cryptocurrency, including Square and Tesla, via its Ark Innovation ETF. Last month, Ark Invest CEO Cathie Wood bought a total of $ 356 million in Coinbase stock.

And what do you think of bitcoin's dependence on fossil fuels? Rather than attack him, wouldn't Elon have done better to propose an alternative solution? After all, it does not seem to us that his cars are produced with air.