Key Points
- Greenpeace USA is increasing its campaign against Bitcoin’s energy-consuming Proof-of-Work consensus mechanism.
- The environmental group is holding Wall Street accountable for funding Bitcoin mining operations, contributing to climate change.
Greenpeace USA, a prominent environmental advocacy organization, is escalating its opposition to Bitcoin’s Proof-of-Work (PoW) consensus mechanism. This mechanism is infamous for its extensive energy use and substantial carbon emissions.
The organization has now taken its campaign to Wall Street, accusing the major trading hub of funding Bitcoin mining operations, thereby contributing to environmental degradation.
Wall Street’s Role in Bitcoin’s Environmental Impact
Greenpeace recently published a report called “Bankrolling Bitcoin Pollution: How Big Finance Supports a New Climate Threat”. The report sheds light on how Wall Street giants like Trinity Capital, Stone Ridge Holdings, BlackRock, Vanguard, and MassMutual are financially backing Bitcoin mining operations.
The report reveals that these institutions offer incentives and grants that enable miners to continue their environmentally harmful practices.
In 2022 alone, these companies were accountable for over 1.7 million metric tons of carbon dioxide (CO2) emissions, akin to the annual emissions of more than 335,000 American homes.
Bitcoin mining operations have evolved into a full-fledged commercial industry, necessitating significant capital for building facilities and procuring specialized computing equipment.
Miners require financial support from banks and asset managers to fund their operations. The report suggests that these financial firms, particularly those on Wall Street, are consistently providing cash for the miners.
Greenpeace also criticized banks for their double standards, pointing out that they advocate for green and sustainability goals while simultaneously investing in the crypto mining industry for profits.
Demands for Transparency
Greenpeace is calling on financial firms, including BlackRock, to be accountable for their environmental impact. The group is urging these companies to disclose the environmental risks associated with their support for the Bitcoin mining industry to shareholders.
The report also emphasizes that due to the substantial support given to Bitcoin miners, the United States now hosts many mining facilities, which consume a lot of electricity. Greenpeace identified Bitcoin miners like Riot Platforms as major contributors to high carbon emissions.
In 2022, the group estimated that the firm’s mining facility located near Rockdale produces the largest carbon emissions in the US.
Greenpeace’s Fight Against Bitcoin PoW
Greenpeace has been opposing Bitcoin’s PoW chain for years. In 2022, they launched a campaign titled “Change the Code, Not the Climate”.
The group demanded that Bitcoin developers rewrite the protocol’s code to a less energy-intensive algorithm like Proof-of-Stake (PoS).
Greenpeace even appealed to Fidelity Investments to join its fight against Bitcoin, petitioning the government to reduce the “outrageous power consumption miners utilize in the United States”.
