Despite some recent market volatility, the rise of Bitcoin has been meteoric, becoming a focal point for financial markets, governments, global regulatory bodies, institutional and retail investors, and the media.
Along with the cryptocurrency’s increased visibility and significant rise in value comes heightened scrutiny surrounding its Environment, Social, and Governance (ESG) impact. While there are many opinions on this hotly debated topic, we believe Bitcoin’s overall ESG impact on the evolving digital society can be viewed favourably.
While it is still relatively early to draw a complete conclusion, it does appear there are some favourable characteristics of Bitcoin’s environmental presence relative to other stores of value that exist across the globe.
One example of this is the increased adoption of renewables and a wider push for increased supply of green energy sources within the sector.
This does not imply investors will be entirely satisfied with the overall environmental risk factors present in the Bitcoin market but there are economic and social pressures we believe will encourage improving relative results in this area over time.
Director and senior research analysts Erik Swords, Justin Sumner, Jonathan Piskorowski, Albert Chu and director research analyst Niall Brennan, Mellon.
Doc ID: 592301