Bitcoin’s environmental affect stays contested as critics query its power use, whereas ESG researcher Daniel Batten disputes a number of of these claims.
In a Saturday X thread, ESG researcher Daniel Batten stated 9 frequent criticisms of Bitcoin mining’s power use are contradicted by peer-reviewed research and grid-level information.
“Each nascent disruptive expertise is accompanied by claims which might be based mostly on lack of information, lack of information, and a concern of one thing unknown,” stated Batten.
In November, the Dow Jones lambasted Harvard College for investing a few of its endowment in BTC, labelling it as a “faux foreign money and money-laundering instrument that can be an environmental disaster.“
In July, Bloomberg claimed that Bitcoin “devours the electrical energy meant for the world’s poor.”
Some environmental researchers dispute these conclusions, arguing that oblique emissions and alternative prices linked to mining stay tough to quantify.
Fantasy: Bitcoin is resource-intensive, destabilizes energy grids
The premise that Bitcoin consumes quite a lot of power, water, and e-waste per transaction is just “not true,” he stated.
Batten argues this has already been debunked by 4 peer-reviewed research concluding that useful resource use is impartial of transaction quantity.
Batten cited peer-reviewed analysis summarized within the College of Cambridge’s 2025 Digital Mining Trade Report, which discovered Bitcoin’s power use is basically impartial of transaction quantity. “Because of this Bitcoin transaction quantity can scale with out growing useful resource use.”
Second, the declare that Bitcoin mining destabilizes energy grids can be a fable, because it really does the other — stabilizing grids via versatile load administration, particularly on renewable-heavy grids like these in Texas.
Bitcoin mining doesn’t improve energy prices
There may be additionally no information to assist the declare that on a regular basis customers pay extra for electrical energy due to Bitcoin miners, he stated.
“Neither within the information, nor in a peer-reviewed examine is there proof to assist the declare,” he added, highlighting a number of situations when Bitcoin mining has been discovered to assist decrease costs.
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Fourth, evaluating Bitcoin’s power utilization to complete international locations is deceptive as a result of the main target ought to be on power supply transformation, not the discount of utilization, in line with the Intergovernmental Panel on Local weather Change (IPCC).
“The worldwide computing community used to assist Bitcoin already makes use of extra power than Thailand or Poland —sure, actually,” reported Morningstar in November.
Batten additionally challenged claims that Bitcoin has a “excessive carbon footprint,” arguing that mining produces no direct emissions and outcomes solely in scope-2 emissions from electrical energy utilization.
“Bitcoin mining is, the truth is, the one international trade for which there’s sturdy, third-party information displaying it has crossed the 50% sustainable power threshold.”
Proof-of-stake isn’t essentially higher
Batten additionally disputed the notion that proof-of-stake Ethereum (ETH) is healthier for the atmosphere than proof-of-work Bitcoin (BTC). Claiming this makes PoS extra environmentally pleasant “errs by conflating power use with hurt,” he stated.
In 2022, an article from the Australian Monetary Evaluate about Ethereum’s transition to proof-of-stake described the blockchain as beforehand utilizing as a lot electrical energy as Chile.
Nevertheless, Batten argues PoW gives many advantages, equivalent to the power to mitigate methane, present stability to the power grid, improve renewable power capability, and monetize wasted renewable power.
Batten argued that whereas landfill and flare fuel may technically be used for different functions, such options have to date confirmed economically infeasible at scale.
Bitcoin mining promotes renewable power utilization
The declare that Bitcoin mining takes away renewable power from different customers can be false, as proof exhibits the other, he stated.
“Many individuals now have entry to renewable power who in any other case wouldn’t have, as a direct results of Bitcoin mining,” reported Batten, citing a venture referred to as Gridless in Africa, which has delivered renewable power to an estimated 28,000 individuals.
Lastly, the argument that “Bitcoin mining wastes power” is a fable as a result of it prevents renewable power waste, attaining over 90% of photo voltaic and wind utilization in research, in line with the ESG professional. Batten cited peer-reviewed analysis by Moghimi et al. and Lai and You, which discovered Bitcoin mining considerably diminished renewable power curtailment and improved microgrid economics.
“Additional, ‘losing power’ isn’t an goal evaluation, however a price judgment. One can solely declare that power is wasted if no good to humanity is produced within the course of.”
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