Tesla CEO Elon Musk agrees with Twitter CEO Jack Dorsey, who said that bitcoin “promotes” renewable energy, although experts warn otherwise.
The carbon-print of cyrptocurrency is equal to some of the largest cities in the world, research shows.
But Mr Dorsey says that could change if bitcoin miners work in partnership with renewable energy companies.
‘Greenwash Bitcoin’
One expert said that it was “a deceptive attempt to greenwash” bitcoin.
China, where more than two-thirds of its energy comes from coal, makes up more than 75% of bitcoin mining worldwide.
The mining process of producing new bitcoin involves solving complex mathematical calculations, which require a large amount of computer power.
New transaction sets are added to the bitcoin blockchain (a cryptocurrency transaction log) every 10 minutes by miners from around the world.
Elon Musk Agrees With Twitter CEO
In a tweet on Wednesday, Mr Dorsey said “bitcoin promotes renewable energy”, in which Mr Musk responded “True”.
The tweet comes shortly after the release of White Paper from Mr Dorsey’s digital payment services firm Square, and global asset management business ARK Invest.
Entitled “Bitcoin as key to an abundant, clean energy future”, the paper argues that “bitcoin miners are unique energy buyers”, because they offer flexibility, pay in a cryptocurrency, and can be based anywhere with an internet connection.
“By combining miners with renewables and storage projects, we believe it could improve the returns for project investors and developers, moving more solar and wind projects into profitable territory,” it said.
Criticism
Writer and critic of bitcoin David Gerard described the paper as a “cynical exercise in bitcoin greenwashing”.
“The truth is: bitcoin works with coal,” he told the BBC.
He gave the example of how an accident at a coal mine in Xinjiang meant it had to temporarily close, causing power cuts across the area and crippling the ability to mine new bitcoins.
“This slowed the blockchain down considerably… and coincided with the recent bitcoin price drop,” he said.
“Bitcoin mining is so ghastly and egregious that the number one job of bitcoin promoters is to make excuses for it – any excuse at all.”
