One of the most frequently mentioned criticisms of Bitcoin mining is that it’s energy-intensive. Making that matter worse is that the industry is a massive consumer of fossil fuels, arguably inviting that criticism. Indeed, data supports the notion that there’s ample room for Bitcoin miners to increase usage of renewable energy.
Some companies are getting that memo. As the groups’ green energy consumption increases, assets such as the Invesco Alerian Galaxy Crypto Economy ETF (SATO) could benefit. The equity sleeve of the fund’s portfolio heavily tilts toward cryptocurrency miners. That’s an asset class that isn’t highly correlated to crypto prices. But it’s one that’s also drawn the ire of policymakers and regulators for elevated dependence on fossil fuels.
Greenfield of Green Energy Opportunity for SATO
Data confirms the point that the bitcoin mining industry, including SATO member firms, have plenty of room to improve renewable energy consumption. According to BanklessTimes.com, two-thirds of the energy consumed by bitcoin miners is fossil fuels, including coal and natural gas.
“The choice of energy for Bitcoin mining has become a topic for debate. There is increasing evidence indicating that a significant amount of Bitcoin mining relies on fossil energies. This information is causing concerns about the impact of Bitcoin and how it could contribute to climate change,” noted analyst Alice Leetham.
Some bitcoin miners are awakening to the benefits of broadening use of renewables. If nothing else, by boosting use of green energy, cryptocurrency miners can appease regulators while reducing criticism of their energy choices. Additionally, reduced dependence on fossil fuels could, over time, boost profitability in the industry.