Jamie Powell writing for FT Alphaville explains why Tesla's recent bitcoin investment is raising questions about the company's environmental priorities.
Tesla: carbon offsetting, but in reverse
We’re not the first to point this out by any means, but bitcoin is dreadful for the environment. Still don’t believe it? Well Bank of America published an excellent report last week (which can be found on David Gerard’s blog), on the dominant digital coin. And, in particular, its carbon impact.
Here are a few choice stats.
Bitcoin -- or to be more precise, bitcoin mining -- currently consumes more energy than Greece, and a touch less than the Netherlands. In theory, it wouldn’t be so much of an issue if mining was powered by renewable energy, but 72 per cent of mining is concentrated in China, where nearly two-thirds of all electricity is generated by coal power.
For the moment then, bitcoin has carbon emissions that sit comfortably between American Airlines’s output, the world’s largest airline which currently carries 200m passengers per year, and the entire US Federal government.
Perhaps the most relevant stat of all, however, is this one:
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