ESG Organizations Send Letter To Congress About PoW Mining, Bitcoin Responds

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Will the ESG FUD ever cease? As a Congressional subcommittee prepares to take an excellent have a look at Proof-Of-Work mining, “more than 70” nationwide, worldwide, state and native organizations wrote a letter to the “Congressional leadership.” In it, they use previous and unreliable information to get their level throughout. They fully ignore all of 2021’s analysis and progress on the matter, as a result of it could invalidate their argument.

The query is, will Congress purchase their poorly researched, alarmist letter? The ESG FUD hit PoW mining like a ton of bricks in 2021. It is perhaps primarily based on a poor understanding of the topic at hand, however the public normally positively purchased it. And they quote the bogus numbers that their authorities invented left and proper on social media. 

Related Reading | Despite Crackdown, Bitcoin Mining Is Still Alive And Well In China

Also, the entire argument fully ignores Bitcoin’s principal advantage. The orange coin supplies a framework and instruments for the world’s transition to a disinflationary system. Paraphrasing “The Price Of Tomorrow’s” creator Jeff Booth, within the inflationary system that we reside in, there’s a transparent incentive for consumption. If your cash’s buying energy decreases by the minute, everyone will logically purchase, spend, and devour every little thing in sight. That is the true monster that the planet’s going through. And Bitcoin fixes it. 

In any case, Bitcoin’s resident ESG FUD professional, Nic Carter, took it upon himself to answer to the ESG organizations that despatched misinformation to Congress. Let’s see how every half did.

The ESG Organizations Make Their Point, Nic Carter Counterpoints

The ESG organizations come out swinging from the introduction on: 

“We, the more than 70 climate, economic, racial justice, business and local organizations, write to you today to urge Congress to take steps to mitigate the considerable contribution portions of the cryptocurrency markets are making to climate change and the resulting greenhouse gas (GHG) emissions, environmental, and climate justice impacts it will have.”

And their accuracies begin from the get-go, additionally:

“In 2018, scientists writing in Nature warned that Bitcoin’s growth alone could singlehandedly push global emissions above 2 degrees Celsius within less than three decades.”

Those numbers are ridiculous. The examine assumes a development relative to the variety of customers of the community, and that’s merely not how Bitcoin works. Even if the entire planet adopted the Bitcoin customary, the community would nonetheless produce one block each ten minutes. Energy consumption just isn’t immediately associated to the variety of customers.

What did Nic Carter reply? That the declare is “false, based on a debunked paper with a completely erroneous model of bitcoin.”

2. bitcoin’s power consumption will ‘solely worsen over time’

most probably will path off over time, after peaking within the subsequent decade (see https://t.co/8x0koM6nR9 for truly rigorous projections)

— nic carter (@nic__carter) January 6, 2022

Right after that, the ESG organizations even throw Ethereum beneath the bus:

“The Digiconomist’s Ethereum Energy Consumption Index estimates that the Ethereum blockchain will consume 71 terawatt-hours this year, nearly the same as the energy consumption of Colombia.”

Since the letter is about PoW mining, it is sensible. The Ethereum neighborhood appears to have fully ignored the letter, a minimum of over at Twitter. 

BTC value chart for 01/07/2021 on Bitstamp | Source: BTC/USD on TradingView.com

Bitcoin Incentivizes Green Energy Infrastructure

The ESG organizations proceed their poorly-researched assault with:

“The GHG emissions from this exorbitant and unnecessary energy consumption is staggering.”

It’s not pointless in any respect. In truth, PoW mining is totally important for a decentralized, permissionless system. And the power consumption is immediately proportional to the safety of the community. Plus, it anchors it to the true world. Not to say the truth that Bitcoin truly incentivizes and funds inexperienced power infrastructure.

Then, the ESG crowd accuses Bitcoin of “exacerbating” the worldwide chip scarcity:

“Increased demand for these machines are exacerbating a worldwide scarcity of semiconductors. A bipartisan invoice by Senators Maggie Hassan and Joni Ernst has referred to as for a report on how cryptocurrency mining operations are impacting semiconductor provide chains.“

With ease, Nic Carter counterattacks with: “Bitcoin miners are not tier 1 clients, they don’t compete with Apple/Qualcomm/NVIDIA for space; the shortage is due to money printing and the demand shock. See section on semis here.”

5. Atlas/ greenidge elevated energy costs in NY.

The Atlas mine introduced again on-line a fallow coal plant (transformed to natgas) which now supplies power to the grid (along with mining). That’s power provided to the grid which wasn’t being produced beforehand

— nic carter (@nic__carter) January 6, 2022

Texas Doesn’t Know What Its Doing, The ESG Crowd Does

Then, the ESG researchers make wild, unbacked assumptions about Texas energy:

“Following a crackdown on cryptocurrency miners in China, many miners are moving to Texas, due to its deregulated grid, taking away the power that Texans need.”

This fully ignores the truth that the state of Texas went to nice lengths to draw these miners. And that, not like the ESG organizations that signed the notorious letter, energy firms in Texas often attend Bitcoin conferences. They are making an effort to grasp the know-how and the alternatives it brings to them. Also, as Carter places it, “Majority of mining is in west texas where transmission bottlenecks mean prices routinely go negative. Huge overcapacity and limited demand for power outside of mining.”

Miners additionally take part in demand response, that means they are not on-line when the grid is overburdened. Their presence dramatically improves economics for renewables and doesn’t compete with households throughout shortage occasions.

— nic carter (@nic__carter) January 6, 2022

The state of Texas is aware of what it’s doing, they see Bitcoin’s future is shiny. These ESG organizations suppose they know higher, although:

“Adding more energy-guzzling crypto mining operations to Texas could exacerbate the sorts of blackouts the state already saw during the extreme cold in February — outages that reporting shows hit communities of color the hardest.”

Wow, taking part in the race card there. So low. And unrelated. Anyway, answering the declare that miners “could exacerbate” the February blackouts, Carter says. “Miners were/ would have been offline during this time, as we demonstrate here. They also help alleviate ‘black start’ issues through primary frequency response.” 

9. Stronghold mining with coal waste is dangerous (implied)

The coal waste was going to oxidize naturally. It was going to combust anyway. This is an incentive to wash up a nasty web site leeching into groundwater and many others. Neutral from a CO2 perspective and ++ from an ecology view

— nic carter (@nic__carter) January 6, 2022

Three Other Prominent Bitcoiners’ Response

Are these direct responses to the ESG organizations’ letter? It’s not clear, however the authors revealed them in the identical timeframe. The first one refers to SHA256, the set of cryptographic hash capabilities that Bitcoin makes use of. Nunchuk founder Hugo Nguyen stated, “Once you understand that SHA256 is close to being 100% efficient at what it does, you’d stop calling it a “waste”. In truth, 100% effectivity is the precise reverse of “waste”. There’s nothing else prefer it.”

Once you perceive that SHA256 is near being 100% environment friendly at what it does, you’d cease calling it a “waste”. In truth, 100% effectivity is the precise reverse of “waste”. There’s nothing else prefer it. https://t.co/SLuVrAPfU2

— Hugo Nguyen (@hugohanoi) January 7, 2022

For his half, Swan Bitcoin’s Brandon Quittem assaults the idea of power consumption being inherently dangerous. “Energy consumption is directly correlated with GDP. Want to help developing countries? Help them harness more energy. Interestingly, Bitcoin acts as a free market subsidy for energy investment.”

3/ Energy consumption is immediately correlated with GDP.

Want to assist creating nations? Help them harness extra power.

Interestingly, Bitcoin acts as a free market subsidy for power funding.

Incentivizes creating in any other case uneconomical power sources. pic.twitter.com/DJ6yYoz6WO

— Brandon Quittem (@Bquittem) January 6, 2022

And Kraken’s Dan Held states that “Bitcoin’s energy consumption is not “wasteful.” Why? Because “It is much more efficient than existing financial systems.” And we’re speaking orders of magnitude, right here. Not solely that, “No one has the moral authority to tell you what is a good or bad use of energy (ex: watching the Kardashians).”

1/ Bitcoin’s power consumption just isn’t “wasteful.”

– It is way more environment friendly than current monetary methods
– No one has the ethical authority to inform you what is an efficient or dangerous use of power (ex: watching the Kardashians)

Let’s debunk this FUD👇

— Dan Held (@danheld) January 6, 2022

Do you know the way a lot power American households use for his or her Christmas lights? As a lot as the entire Bitcoin community, that’s how a lot. 

Related Reading | Is This The Reason China Banned Bitcoin Mining? Carvalho’s Mind Blowing Theory

Where is the letter to Congress protesting  Christmas lights, ESG organizations?

Featured Image by Karsten Würth on Unsplash | Charts by TradingView

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