Greenpeace Report on Bitcoin Mining Faces Industry Backlash

The report Mining for Power by the American branch of Greenpeace, which criticizes Bitcoin mining and its ties with the government, has been met with sharp criticism from industry experts.

According to the study, the Bitcoin mining industry closely collaborates with companies involved in fossil fuel extraction and environmental pollution. Such organizations are said to “deny global warming and oppose actions to address the climate crisis.”

“Mining companies and conglomerates are linked with politicians and dark money groups promoting pro-corporate political agendas that harm workers and BIPOC communities, while simultaneously restricting democracy,” Greenpeace claims.

The document reiterates the argument that the use of the Proof-of-Work consensus algorithm in mining results in greenhouse gas emissions equivalent to pollution levels of industrialized countries.

Researchers assert that most of the energy for Bitcoin mining is derived from fossil fuels, and the carbon footprint of the blockchain continues to grow over time. Additionally, the demand for mining “strains power grids and increases taxpayer costs.”

Greenpeace highlighted the American Legislative Exchange Council and other projects funded by the Koch brothers and the administration of former President Donald Trump as organizations promoting mining and harming the climate.

“Take, for example, Exxon Mobil, which has pilot projects for Bitcoin mining using methane from dirty fracking sites in North Dakota. […] The Satoshi Action Fund stands out among crypto associations and Bitcoin supporter groups as the most aggressive in defending the mining industry,” environmentalists stated.

Daniel Batten, managing partner of CH4 Capital, criticized the report. He noted that people “rarely make it past the first paragraph without reading a large amount of misinformation.”

The only thing breaking is GreenpeaceUSA’s credibility.

One of the features of GreenpeaceUSA reports is that they are very easy to debunk. You rarely make it past the first paragraph without reading a large swathe of misinformation. This latest report is no exception.

1. “The… https://t.co/ekgUnpuriV

— Daniel Batten (@DSBatten) March 19, 2024

According to him, most of the arguments presented in the study are either outdated or false.

“The data on resource use per transaction is taken from a comment by Central Bank employee Alex de Vries. His method has been debunked in peer-reviewed studies, as well as at the Cambridge Judge Business School. In other words, the values presented are false,” Batten exemplified.

Under Greenpeace’s post on X, the community left a note warning of factual errors in the study.

BREAKING: @GreenpeaceUSA just released an explosive new report exposing the deep ties between the fossil fuel industry, right-wing climate deniers, and the growing lobbying network pushing a plan to save dirty coal and gas plants with #Bitcoin

READ NOW: https://t.co/zXpeHg6LkB pic.twitter.com/YXPrd3jIwF

— Greenpeace USA (@greenpeaceusa) March 19, 2024

“The article contains numerous factual errors, such as incorrect energy accounting per transaction, as well as outdated and inaccurate information like the share of fossil fuels used as an energy source. Currently, most resources for Bitcoin mining are renewable,” the warning states.

Previously, Greenpeace criticized the U.S. Securities and Exchange Commission’s decision to approve spot Bitcoin ETFs.

In March 2023, eco-activists introduced a mascot symbolizing the “dangerous levels of pollution” caused by mining the first cryptocurrency.

However, later, the creator of the “Skull of Satoshi,” artist Benjamin Von Wong, stated that his work “was never intended to fight Bitcoin.”