Energy Analyst Says Bitcoin is no Longer Tied to Emissions
- Bitcoin has broken away from tethering, unlike the current fiat system, according to Daniel Batten.
- The Bitcoin emission intensity trend has been falling since the ban in China.
Daniel Batten, a climate change venture capitalist and energy analyst, said that Bitcoin’s success is independent of emissions. In a Twitter thread, Batten analyzed the development of Bitcoin prices over the past few years, comparing it with the emissions associated with the cryptocurrency.
Batten’s analysis showed that Bitcoin has broken away from tethering, something he says the current fiat system cannot manage. According to him, there is a correlation between the current fiat system and the GDP. GDP increases with increased emissions in the current financial system, a pattern from which Bitcoin has broken away.
Batten presented his argument using different energy charts that are related to Bitcoin. The Bitcoin Sustainable Energy chart reflected a 6.2% growth rate since 2020. This rate is faster than that of any other big industry. Bitcoin’s sustainable mix grew by 52.6%, climbing higher than any other recognizable sector.
China banned Bitcoin in the middle of 2021. One sector affected the most was the Bitcoin mining industry. A severe clampdown by the Chinese government meant that many mining companies shut down activities while others moved to more friendly regions or adopted different mining systems outside the country.
Batten’s analysis showed that the Bitcoin emission intensity trend has been falling since the ban in China. He observed that during the same period, Bitcoin emission intensity has been on the decrease. Contrary to an earlier report by an independent outfit, Batten revealed that the Bitcoin intensity has been trending down for at least three and half years.
Batten noted that we could derive more accurate results on Bitcoin emission from charts of the Bitcoin network. According to him, this is now possible with the current existence of a model of the whole Bitcoin network. He noted that the model adds exclusion from the Cambridge Center for Alternative Finance (CCAF) model, which includes off-grid mining and flare gas mining.