Bitcoin & climate
When it comes to climate -
"We're going to need bigger guns".
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I have been a member of Extinction Rebellion for few years. Im fully aware of the dire Climate Emergency but also increasingly aware despite all great efforts, we are not even making a dint on the exponential increase in green house gasses. When it comes to climate, we're going to need bigger guns !
Many people when looking at Bitcoin for the first time, only see the immediate & surprisingly large energy consumption. However, few grasp the much broader consequences of Bitcoin on Finance, Growth & Climate.
Some recognise growth as the major negative factor in the economy, but have no clue how to change this paradigm, other than changing the political landscape. Needless to say though, growth-dependent turkeys will never vote for Christmas.
Many people when looking at Bitcoin for the first time, only see the immediate & surprisingly large energy consumption. However, few grasp the much broader consequences of Bitcoin on Finance, Growth & Climate.
Some recognise growth as the major negative factor in the economy, but have no clue how to change this paradigm, other than changing the political landscape. Needless to say though, growth-dependent turkeys will never vote for Christmas.
The Big Tomali !
What if money its self was the core problem ?
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What if we could simply just save for retirement & not have to invest ?
What if politicians could NOT simply “print” money to raise an army & take us all to war ? What if Airlines & Fracking companies were NOT bailed with freshly printed money ? What if central banks could not print enormous amounts of money give it to the people they dare not say no to. |
What if Bitcoin could eat the financial world
Few have considered the climate impact of investment in Bitcoin & I think it will be massive! Many have slogans like "Degrowth" & "Circular economy" with not a clue as to how to implement them. Bitcoin can do the heavy lifting for sustainable economic change.
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Bitcoins emissions (thin red line) are shown in proportion to other much larger sectors (accurate for 2022). If Bitcoin could eat away at the financial system here is what it might look like. Even though Bitcoins emissions are shown to (complete guess) treble, they are still insignificant compared to the effect de-financializing savings could have. |
Bitcoin and methane emissions
Reduced investment = reduced demand for oil & gas = less methane flaring at wells. Bitcoin miners compete for that methane, and convert it to a much less powerful GHG.
This is just one example of how Bitcoin power consumption can slash dangerously high levels of methane. This form of carbon capture is already happening and expanding. This is not a technology solution coming on stream, maybe, in 2030. For everyday people, a de-financialized world backed by Bitcoin looks very different to today's inflationary scene.
Government MUST have growth & inflation because of the National debt, but growth is inherently bad for emissions. Government is inherently anti climate. There are no good solutions but Bitcoin may be the best.
This is just one example of how Bitcoin power consumption can slash dangerously high levels of methane. This form of carbon capture is already happening and expanding. This is not a technology solution coming on stream, maybe, in 2030. For everyday people, a de-financialized world backed by Bitcoin looks very different to today's inflationary scene.
Government MUST have growth & inflation because of the National debt, but growth is inherently bad for emissions. Government is inherently anti climate. There are no good solutions but Bitcoin may be the best.
₿ = No longer forced to invest !
₿ = No longer forced to War !
₿ = No longer forced to Pollute !
₿ = Less Corruption !
Any one of these is a huge Climate win !
Maybe Bitcoin is the ONLY thing that can combat the
Political-Financial Complex
What if money didn't devalue ?
What if it stayed the same or you got return ?
(the value increased over time).
If inflation is stealing the value of your savings & pensions (quite deliberately via money printing), you are effectively forced to invest in anything that will hold its value against inflation, or ideally give a return, usually Oil & Gas.
Pension are just a series of investments that you have little control over. Most people have no clue as to where their pension is even invested. It's just something deducted from their pay day.
What if it stayed the same or you got return ?
(the value increased over time).
If inflation is stealing the value of your savings & pensions (quite deliberately via money printing), you are effectively forced to invest in anything that will hold its value against inflation, or ideally give a return, usually Oil & Gas.
Pension are just a series of investments that you have little control over. Most people have no clue as to where their pension is even invested. It's just something deducted from their pay day.
Refuse to invest ! Buy Bitcoin !
Let's face it ANY investment will damage the environment in some way even wind turbines (a relatively benign investment that I have) will require concrete steal & ground clearance. Fracking, a major source of methane was funded through money printing. “The real catalyst of the shale revolution was the 2008 financial crisis. Bitcoin ends money printing.
Further reading on this subject from the Bitcoin Policy Institute
Energy consumption ≠ Emissions
While Bitcoin does have high energy consumption for now, this does necessarily = emissions. What we really need to look at is the emissions that Bitcoin displaces. As you can see on a world scale, Bitcoin emissions are insignificant.
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Let's revisit methane, a huge climate problem
Bitcoin can help
Here Bitcoin (the thin red line) and Gold mining (Gold line) CO2eq emissions are compared to potentially mineable man made Methane. The graph slope is the potential for Bitcoin to reduce Methane emissions.
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Here's the red line zoomed in.
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Converting Methane to CO2
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Methane is 86x more potent Green House Gas than CO₂ over 20y period !
When fully combusted 1 kg of natural gas releases 2.75 kg of CO₂ which gives an overall reduction of 31x or 3100% in Global Warming Potential (AKA CO₂e). 86/2.75=31.2 Burning Methane to generate electricity isn’t always profitable because, quite often, you can’t connect the electricity to the grid economically. Bitcoin, however doesn't need to be connected to the grid, so could incentivise much methane burning. This has big possibilities to reduce damaging emissions from the oil & gas industries, landfills & pig/dairy. 
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Why flare Methane? Methane is currently ≈ 50% of GHGs, half of that is man made. As you can see, it is very important from a climate point of view that we fully combust as much methane as possible.
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Flared Methane & Stranded Energy
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According to 2022 Global Gas Flaring Tracker Report In 2021, 144 billion cubic meters of gas was needlessly burnt in flares at upstream oil and gas facilities across the globe. An estimated 1406 TWh of methane could yield ~30% roughly 422 TWh of electricity, enough to run all Bitcoin mining 6x over.
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In the Oil and Gas industry, previously “stranded” energy in the form of Methane has been flared or worse, vented. Now the gas is being increasingly used for bitcoin mining. Burning the gas efficiently to produce electricity is a net climate positive as long as its using existing flares and Vents. This has huge potential for CO₂e Reduction of the Oil & Gas industry !
How Ironic that the Oil & Gas industry could be self incentivised to clean up it own mess. |
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Global Warming Potential of Flared Oil & Gas Methane vs Bitcoin
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After Flaring methane we're left predominantly with Carbon Dioxide & un burned Methane
The warming potential of that leftover methane is shown in red.
Burning just a 3rd of this methane efficiently in a generator, would result in reduction of 1 Billion Tonnes CO₂e. |
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Sources
How Bitcoin Mining Is Disrupting Global Energy Markets Gas-to-Bitcoin Mining Firm Crusoe Energy Systems Raises $505 Million
Crusoe Energy Systems working on a gas-to-bitcoin mining pilot with the gas giant Exxon. EXON Mobil trail mining bitcoin. |
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Bio Methane & Bitcoin
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Here we see Scilling Digital Mining using anaerobic digestion from pig manure to mine Bitcoin AND doing the climate a huge favour in the process !
With enough methane to run 4 X this , a possible 844kW. Selling the electricity back to the grid is not an option without a major grid upgrade ! 
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Land Fill Methane
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Vast amounts of methane leak out of land fills (shown left). Adam Wright form vespene.energy talks to Pete McCormack on What Bitcoin did
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Methane not dissipating !?
Even more worrying new reports of Wildfires gobbling up methane scrubbers . Basically Methane persisting for much longer in the atmosphere for much longer !
https://climatecasino.net/2022/07/is-the-methane-catastrophe-happening-right-now/
https://climatecasino.net/2022/07/is-the-methane-catastrophe-happening-right-now/
Gold mining.
Bitcoin can drive a reduction in environmental destruction & emissions from gold mining. With Bitcoin being such a perfect store of value, gold will become a relic used only for jewellery and industrial uses.
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The Gold industry produces 126MT CO₂ Annually
Gold mining =
In 2013 it took 25.8 gallons of Diesel to produce 1 ounce of gold ! |
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Reduction in direct banking emissions
Bitcoin currently produces much lower emissions compared to the Banking sectors level of direct emissions. The resulting emissions coming from investment is an order of magnitude greater. See breakdown page.
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This is a guesstimate of direct day to day Banking emissions - 70 MTCO₂e / year, however we also have to add to this the less obvious but much greater emissions resulting from the Finance sector. For example, the UK Finance sector alone responsible for 805 MTCO₂e.
Financial Times - Banks feel the heat For further comparison, the emissions from Wall Street financing tracked in the report, are equal to emissions spewed into the air by 432 million passenger vehicles in one year!
If we're lucky, the banks show us their scope 1 & 2 emissions, but they never like to show the detail. They will gladly tell you how much they "reduced" emissions by & how everything is 94% renewables or "offset". So I'd take everything with a massive pinch of salt.
From Barclays ESG Report below (page 45) 
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These 38 Fossil Banks are among the biggest financiers of the fossil fuel industry. A handful have adopted policies excluding or restricting financing for some parts of the industry, but none have yet committed to stop funding fossil fuels altogether.
HSBC Bank direct (Scope 1 & 2) emissions from their ESG report. The remarkable reduction is mainly due to Covid.
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Universal basic income for the rich.
When the final meltdown occurred in September 2008, Congress passed the Troubled Asset Relief Program (TARP), the (in)famous $700 billion bank bailout of the financial sector. The gains, it turned out, were privatized—the losses were socialized. Wall Street was pro-free market until they were in trouble.
2008 Bank Bailout: Its True Cost, and Who Paid It
2008 Bank Bailout: Its True Cost, and Who Paid It
Bitcoin demand response
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Wind farm owners.
No demand - No problem. Overbuilding renewables could be a costly mistake, as no demand = no return. Bitcoin mining will happily snap up this unused energy & turn off at a moment's notice, when public demand for energy is high.
For how power grids actually work, check lancium.com & out Shaun Connell on Twitter on demand response.
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Reduction in Military
A rather too cosy relationship? The world's biggest polluter, the Military, is generally funded by unlimited money printing. Ending the "money printer go Brrrr" cycle seriously curtails government ability to spend vast amounts on the military. If your enemies can't afford a large military because wealth is held in Bitcoin - neither can you. Military disappears in a puff of logic.
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This seems to a very cosy relationship, & a major CO₂eq feed back loop. |
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Who's talking about Bitcoin & Climate ?
Margot Paez One of the rising stars in this area, & other panelist’s discuss mining with renewable energy & methane.
Twitter ( jyn_urso ) “Climate activists need bitcoin as one of their tools for system change. This is so not easy to understand, but how will you achieve system change, not climate change, if you don’t change the fundamental economics of society? Climate change is a symptom of a more fundamental crisis. If we only achieve decarbonization, the core problem will remain and new symptoms will arise.” A Financial Hail Mary for the Climate: An Argument for Bitcoin Financialization: A backdrop for understanding inaction on climate change and Bitcoin’s role |
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Troy CrossTroy Cross - Philosopher. Environmentalist. Bitcoiner.
Prior to coming to Reed in 2010, he held positions at Yale and Merton College, Oxford. btcpolicy.org/authors/troy-cross |
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Daniel Batten
In this Video D S Batten describes how Methane mining can save 0.15 c of global warming
Check out DS battens in depth website on bitcoin mining with methane |
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Jeff Booth Jeff Booth the author of The Price Of Tomorrow" discuses Bitcoin as a deflationary force.
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Nic Carter Peter McCormick talks to Nic Carter about what the White House thinks about Bitcoin
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Further Sources
The Cantillonian Oligarchy: Why the Left Should Embrace Bitcoin
medium.com
Who is financing the Climate Crisis ?
reclaimfinance.org
Bitcoin – Transformer to an Ecological Society
bitcoinsozial.de/transformator-ecological-society/
medium.com
Who is financing the Climate Crisis ?
reclaimfinance.org
Bitcoin – Transformer to an Ecological Society
bitcoinsozial.de/transformator-ecological-society/
People once owned the land with out money
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Indigenous tribes are force of their ancestral lands by Governments, Industry & teems of highly payed lawyers with endless money. Of corse the tribes had/have no money and can not compete.
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For anyone really wanting to get into the climate science - The @IPCC_GH has the most extensive library of Climate Science Here a couple of my favourite charts that are not easy to find. IPCC AR6 WGI Page TS-135
