Bill Gates criticized bitcoin for how much energy is consumed by the world’s largest cryptocurrency. As he emphasized, paying with bitcoin consumes much more energy than other payment methods.
- Bill Gates in one of the interviews criticized the negative impact of bitcoin on the environment
- Bitcoin mining is very energy intensive, said Andrew Ross Sorkin in an interview with CNBC
- An analysis by scientists from the University of Cambridge shows that the production of cryptocurrency uses more electricity than the whole of Argentina
One of the richest people in the world, Microsoft founder Bill Gates is known for his commitment to environmental protection. During a conversation that the billionaire had with CNBC journalist Andrew Dunn on the Clubhouse app, Gates spoke out against bitcoin, explaining his opinion on the negative environmental impact that cryptocurrency production generates.
Bill Gates criticizes bitcoin for being energy intensive
“By making a payment transaction with bitcoin, we generate more energy than with any other payment method,” he said, and stressed that “it is not environmentally friendly.”
However, Gates said, “Bitcoin’s energy consumption problem could disappear if renewable energy sources are used to produce it, without excluding other users.” He also explained that he did not believe that the production of cryptocurrency clearly contributed to climate change. The founder of Microsoft also added that he is skeptical about cryptocurrencies, preferring to invest in such “products” as vaccines against measles or malaria.
Recently, the production of cryptocurrencies has become one of the most energy-consuming processes. The global bitcoin network consumes as much electricity as in 2018 was the equivalent of Ireland’s annual electricity demand. A recent study by scientists from the University of Cambridge indicates that bitcoin currently consumes as much energy as the whole of Argentina.
Bill Gates is not alone in his criticism of the environmental impact of cryptocurrencies. Fahad Kamal, IT director of Société Générale’s Kleinwort Hambros bank, stated in late February that bitcoin production consumes “a staggering” amount of electricity, which is expected to worry investors.
In turn, economist Nouriel Roubini, who predicted the 2008 financial crisis, in February criticized bitcoin and the growing interest of investors in this subject, fueled by Elon Musk’s decisions regarding his capital involvement in this area.
“The basic value of bitcoin is zero. So if a carbon tax was introduced, associated with the energy-consuming process of mining the currency, the currently growing bubble would burst very quickly” – indicated the economist.
However, cryptocurrencies have many supporters, as can be seen from BTC prices, which on February 21 reached $ 58,640 (PLN 212,637).