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BitMEX To Address Growing Carbon Footprint Of PoW Currencies

BitMEX, the crypto derivatives trading platform, has said that it will address the growing carbon footprint of Proof-of-Work (PoW) currencies like Bitcoin (BTC).

It has been reported that the exchange said that while there are ostensibly “wildly divergent views and accuracy of information” regarding the climate risks posed by some cryptocurrencies, BitMEX feels it has a “responsibility to take positive action.”

BitMex, the derivatives trading platform, has responded to allegations concerning the negative effects of cryptocurrencies on the environment with a pledge to go carbon neutral. — Cointelegraph (@Cointelegraph) May 21, 2021

However, this action will take the form of an attempt to offset its carbon footprint by donating  $0.0026 for every $1 of blockchain fees its users’ payout.

BitMEX said:

“Carbon offsetting is not the only answer to concerns relating to the environmental footprint of crypto, but it’s certainly a good start […] the industry has to come together and tackle challenges that risk sidetracking our positive intentions.”

The report said that BitMEX has taken its $0.0026 figure from rough calculations published by Sam Bankman-Fried, the CEO of crypto derivatives exchange FTX and Alameda Research. Bankman-Fried’s suggestion, admitting “large error bars,” is that this sum should be enough for crypto firms to offset their carbon emissions. 

1) Ok, so how much CO2 does BTC actually create? How much of a worry is it? — SBF (@SBF_Alameda) May 20, 2021

This month, the European Central Bank’s recent Financial Stability Review highlighted the “exorbitant carbon footprint” of crypto-assets as grounds for concern.

Thus, organizations ranging from Greenpeace to Tesla have begun ceasing to accept BTC payments due to the energy intensity of mining and transactions.

Source: Cointelegraph



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