Square has launched the Bitcoin Clean Energy Investment Initiative, a project focused on the energy consumption of Bitcoin, in which will invest $ 10 million.
This isn't Square's only green initiative. Jack Dorsey's company has also announced its plan to become a zero-carbon company by 2030.
To do this, Square will work with Watershed, which is responsible for supporting companies to address climate change.
To achieve zero carbon emissions, Square will progressively reduce its polluting impact, monitoring progress from the first quarter of 2021.
Amrita Ahuja, Square's chief financial officer, said:
“The commitment to being a net zero carbon contributor is consistent with our purpose of economic empowerment, as we will continue to work for our clients without contributing to long-term climate issues. Endangering the environment will ultimately disproportionately endanger underserved communities around the world. "
Square's Bitcoin Clean Energy Investment Initiative
The Bitcoin Clean Energy Investment Initiative it is also part of this process. This program was born from the fact that Cash App has bought a large amount of Bitcoin For your customers. But nevertheless, Bitcoin production requires a lot of energy.
Square intends to support mining activities to make use of green technologies. The goal is to accelerate the transition to clean energy, not just carbon reduction.
To do this, Square also intends to expand its initiative to other companies.
Jack dorsey explained:
“We believe that cryptocurrency will eventually be powered entirely by clean energy, eliminating its carbon footprint and driving the adoption of renewable energy globally. Published estimates indicate that Bitcoin already consumes a significant amount of clean energy, and we expect Square's investment initiative to accelerate this conversion to renewable energy. "
Bitcoin and energy consumption
One of the problems with Bitcoin is the fact that the mining requires high energy consumption. As the graphic produced by the University of Cambridge, the Cambridge Bitcoin Electric Consumption Index is reaching very high levels, coinciding with the Bitcoin price rise.
In reality, energy consumption is reduced with the May 11 halving. In fact, with miners' rewards cut in half, many people also had to cut back to accommodate their costs. However, with the price rise, mining activity increased again.
maybe only the upcoming halving events could reduce the energy consumption of Bitcoin.
The problem was known from the beginning, so much so that one of the pioneers of Bitcoin, Hal finney, spoke about it. However, to date no solution has been found.
Who knows if Jack Dorsey's initiative will succeed where Bitcoin supporters have failed for over 10 years.