How Tyler Winklevoss plans to go green with Bitcoin
For assets you can’t actually hold, cryptos use a whole lot of energy.
Bitcoin (CRYTPO: BTC) is in the green in more ways than one.
Firstly, the price is up 2% over the past 24 hours, to US$35,234 (AU$46,979). That brings the token’s year-to-date gains back above 23%, according to data from CoinDesk.
Not bad, for investors who can stomach the wild volatility.
Secondly, the green light is on Bitcoin in regards to cutting its rocketing carbon footprint.
One heck of a carbon footprint
Bitcoin mining – verifying blockchain transactions and mining new tokens – uses a tremendous amount of energy. As much as all of the Netherlands, by recent estimates.
In a world that’s focused on decarbonising to limit potential global warming, being an energy hog isn’t a good look. Media attention – spurred by Tesla Inc (NASDAQ: TSLA) founder Elon Musk – of its huge carbon footprint is one reason Bitcoin’s price has come under pressure in recent months.
It’s also why some crypto miners are hoping to charge a 10% premium for Bitcoin that can be blockchain verified to have been mined by computers using only renewable energy.
Taking a different track…
Tyler Winklevoss has plans for green Bitcoin
Tyler Winklevoss is perhaps still best known for his legal stoush (alongside his twin brother Cameron) accusing Mark Zuckerberg of stealing their idea to launch Facebook, Inc. (NASDAQ: FB). A case which was eventually settled in 2008 with Zuckerberg paying out a large sum of money to the twins.
In more recent times Winklevoss has invested heavily in Bitcoin. He’s currently the CEO of Gemini, the crypto exchange platform he founded.
And Gemini aims to make its Bitcoin usage climate friendly via a new endeavour called Gemini Green.
How?
According to the media release, Gemini is working with Climate Vault, a non-profit entity founded at the University of Chicago in the United States. The intent is to eliminate some 350,000 tonnes of CO2 related to Bitcoin’s use, from the atmosphere.
Gemini Green will do this by buying carbon permits, through Climate Vault, directly from government-regulated cap-and-trade markets. These permits will then be removed from the market, which will reduce the total amount of carbon permits available.
Discussing the initiative, Tyler Winklevoss said:
As Bitcoin emerges as a dominant store of value, it’s imperative that we incorporate sustainability for future generations. We are proud to team up with Climate Vault to offset our exposure to non-renewable mining and contribute to the decarbonising of Bitcoin.
Michael Greenstone, co-founder of Climate Vault added, “Climate Vault is providing a simpler, faster, and more reliable path to net-zero emissions, not just for traditional businesses, but now – thanks to Gemini – for the innovative world of cryptocurrency.”
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