Key Takeaways
Bitcoin will survive despite the recent criticisms surrounding the network’s environmental impact, Iris Energy Pty says.
The cryptocurrency space has been the subject of debate in recent weeks after Tesla halted Bitcoin payments, citing environmental concerns.
Bitcoin’s price has plummeted this month, which could be an indicator that institutional investors are losing interest in the asset.
Share this article
Despite the increasing number of criticisms regarding Bitcoin’s environmental impact, Iris Energy Pty thinks the asset is here to stay.
The Bitcoin Energy Debate
Environmental debates will not kill Bitcoin, Iris Energy Pty has said.
The Australian mining company, which uses renewable energy for its operations, spoke to Bloomberg amid ongoing discussions over Bitcoin’s environmental impact. Daniel Roberts, the company’s co-founder, remarked that Bitcoin requires a high level of energy for security because the market has determined that it is valuable. He said:
“I don’t think it’s up to any individual to decide where energy should be used. It’s a market-based decision where Bitcoin, by virtue of the attraction and adoption it’s gained, is commanding that level of energy to secure it, to secure people’s savings.”
Bitcoin has faced increased scrutiny in recent weeks after Tesla announced that it would stop accepting payments in the asset owing to environmental concerns. The electric car company’s shock U-turn contributed to a major sell-off that’s seen Bitcoin tumble 43% off record highs recorded in April. An ongoing regulatory crackdown in China has also contributed to the market-wide negative sentiment in recent weeks.
Bitcoin critics often point out that the network uses roughly 115 terawatt-hours of energy annually, which is more than most of the world’s countries. Many analysts have suggested that growing ESG (Environmental, Social & Governance) concerns could be a major factor preventing big companies from adopting Bitcoin. Prior to Tesla’s comments on the network’s environmental impact, the company had added $1.5 billion worth of the asset to its balance sheet, following the likes of MicroStrategy and MassMutual.
The long-awaited arrival of institutional investors fueled Bitcoin’s biggest price rally in history, peaking at almost $65,000 in April. In recent weeks, though, momentum has stalled. Bitcoin has failed to break above its 200-day moving average this week, which could be a sign that the market is due to decline further.
With growing attention on the impact of Proof-of-Work, green mining solutions are in a good position to win from the asset’s success. “The recent news in the space and the focus on ESG continues to highlight that the business model we embarked on many years ago is likely the right one,” Roberts said.
Roberts told Bloomberg that the firm had been approached by multiple special purpose acquisition companies (SPACs) with a potential listing in mind. The valuation would reportedly be worth around $300 million to $500 million.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Crypto Market Continues to Slide After Week of Chaos
The cryptocurrency bloodbath continues. Market Faces Heavy Correction Bitcoin and other crypto assets plunged Sunday, days after one of the market’s biggest crashes in over a year. The leading crypto…
Crypto Market Tumbles After Tesla Halts Bitcoin Payments
Tesla’s Bitcoin U-turn sends crypto assets tumbling. Tesla Halts Bitcoin Payments Tesla will no longer accept payments in Bitcoin, Elon Musk has announced. The self-described “Technoking of Tesla” took to…
Bitcoin Tumbles as China Issues Yet Another Threat
Bitcoin investors have panicked for a third consecutive day, sending the asset 12% into the red. Today, it’s because China has sent out another warning to the crypto industry, specifically…
What is Polygon (MATIC): Ethereum’s Internet of Blockchains
In terms of both decentralized app (DApp) development and adoption, no blockchain has been more successful than Ethereum (ETH). But despite its relative success, the Ethereum network still contains several…
