Following concerns raised by Tesla CEO Elon Musk about Bitcoinâ€™s energy consumption, global asset manager Ark Investment Management explained that the concerns are â€œmisguided.â€ Referring to its research using real-world data, the investment firm emphasized that â€œthe impact of bitcoin mining could become a net positive to the environment.â€
Bitcoin Mining Could Help the Environment
Investment Management (Ark Invest) published a note Monday responding to the comments made by Tesla and its CEO, Elon Musk, regarding Bitcoinâ€™s energy consumption. The electric car company has suspended accepting bitcoin for payments citing environmental issues. â€œWe are concerned about rapidly increasing use of fossil fuels for bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,â€ Tesla wrote.
Ark Investâ€™s analyst Yassine Elmandjra wrote:
The analyst added: â€œWith real-world data, we demonstrate how mining could impact the amount of renewable energy provisioned to the grid by transforming intermittent power resources into baseload generation by way of energy storage.â€
This is not the first time Ark Invest has tried to explain bitcoinâ€™s energy consumption. The firm recently published a report in collaboration with Jack Dorseyâ€™s Square Inc. arguing that â€œBitcoin is key to an abundant, clean energy future.â€ As explained in the report, the analyst detailed:
While Musk and Tesla have voiced their concerns over bitcoinâ€™s environmental impact, both said that they have not sold their BTC despite speculation that Tesla may have so over the weekend.
Elmandjra further explained that Teslaâ€™s decision to drop bitcoin as a payment method â€œseems to have been triggered by private equity firm Greenidgeâ€™s plans to revive a coal power plant to mine bitcoin.â€ He noted that â€œElon Musk referenced the announcement in a tweet.â€
However, the analyst noted:
Do you agree with the Ark Invest analyst about bitcoin miningâ€™s impact on the environment? Let us know in the comments section below.
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