In a recent study, global audit giant KPMG unveiled surprising insights about Bitcoin, demonstrating how the renowned crypto asset is eco-friendlier and less susceptible to misuse than popularly believed. This report seeks to address prevailing misperceptions, examining relevant ESG (environment, social and governance) issues tied to Bitcoin’s usage.
The study highlights that Bitcoin’s carbon emissions, often a point of concern, are significantly less harmful than the broad environmental impact of various sectors, including tobacco and tourism. Contrary to widespread belief, Bitcoin’s carbon emissions ranked second-lowest, right behind video consumption in the U.S.
Additionally, KPMG suggests strategies to further reduce Bitcoin’s carbon footprint. These involve leveraging renewable energy sources and environmentally-friendly mining methods that leverage methane-derived energy.
The report also charts Bitcoin’s modestly minimal role in global money laundering activities. Despite money laundering comprising 2-5% of the global GDP, Bitcoin represents a mere 0.24% of such illicit transactions. Moreover, Bitcoin is less likely to be the recipient of laundered funds compared to Ether, stablecoins, or altcoins, thereby underscoring the relative resilience of Bitcoin against financial crimes.
A big boon of Bitcoin, as per KPMG, is its rigid yet fair governance mechanism. Since modifications of Bitcoin’s ground rules require extensive consensus (called forking), it is near impossible for powerful entities or malicious actors to manipulate the system.
This report highlights how common misconceptions continue to taint Bitcoin’s image. However, as these revelations indicate, Bitcoin’s sustainability and security features could be game-changers in the crypto space, boldly challenging existing narratives. Moreover, they shed light on the potential impact of crypto in fostering social causes such as supporting Ukraine and advancing electrification in Africa’s rural regions.