Daniel Batten, climate tech investor, bitcoin environmental impact analyst, and CEO of CH4 Capital, has launched another innovation bitcoin-facts-that-every-esg-investment-committee-should-know/” target=”_blank” rel=”noopener nofollow”>investigation which positions btc as the world’s leading environmental, social and governance (ESG) asset. Their analysis provides a detailed, data-driven perspective on bitcoin‘s potential and challenges prevailing narratives.
bitcoin Market Cap Will Reach $3.3 Trillion
Batten’s research highlights a critical opportunity for bitcoin in the ESG investing space. With around $23 trillion locked in ESG funds seeking sustainable investments, btc‘s current market capitalization of $724 billion presents a stark contrast to other institutional-grade assets, typically measured in trillions.
“Commentators, including Willy Woo, have argued that bitcoin must stay above $1 trillion before institutions that hold the wealth of nation states and/or retirement funds will feel comfortable investing in it en masse,” Batten speculates.
Their analysis, backed by experts like Willy Woo, proposes that a simple 1% allocation of ESG funds to bitcoin could increase its market capitalization to approximately $1.68 trillion. An aspirational 2.5% allocation target could skyrocket the market cap to around $3.3 trillion.
“Thanks to (Willy) Woo’s analysis we can forecast that impact within a range,” Batten explained, adding that depending on the model, the price increase ranges between $1.30 and $4.80 per dollar invested.
“(This) puts it on the roadmap of institutional investors. As institutional investors invest in bitcoin, this further increases bitcoin‘s market capitalization, and we now have a positive feedback loop: catalyzed by the initial engagement between bitcoin and the ESG community,” Batten maintains.
The best ESG asset
Batten has always been at the forefront, preaching the ESG superiority of bitcoin. His research critically examines the prevailing ESG arguments against bitcoin. These include concerns about its energy use, emissions and dependence on fossil fuels.
In his latest article, he points out that these arguments are largely based on a single study from the Cambridge Center for Alternative Finance. Batten maintains that the data in this study is outdated, particularly in the context of rapidly evolving btc mining.
To counter outdated perceptions, Batten developed the BEEST model, which incorporates off-grid mining data. This model reveals that a substantial portion of btc mining (approximately 28% by hash rate) is carried out by 52 off-grid mining companies, predominantly using sustainable energy sources (almost 80%).
Notably, this information was not included in the Cambridge research and directly challenges the conventional narrative by demonstrating a significant shift towards sustainable energy use in mining.
Overall, the bitcoin network uses more than 52% sustainable energy. “This makes it the largest sustainable energy user industry in the world,” says Batten, who added that btc emissions have not increased in the last 4 years with increasing adoption.
A key aspect of Batten’s research is his emphasis on the role of mining in methane mitigation. This approach is not only innovative but also addresses an important environmental issue. Batten maintains that btc mining can cost-effectively mitigate methane emissions, especially those from landfills. This approach not only reduces a potent greenhouse gas but also provides a viable and cost-effective use for energy that would otherwise be wasted.
Batten’s research quantifies the environmental impact of bitcoin mining on methane mitigation. He notes that miners are already mitigating 6% of network-wide emissions annually, a figure he believes can increase significantly with targeted initiatives. For example, mining at just four medium-sized methane-spewing landfills could triple emissions mitigation efforts.
The research also goes beyond environmental concerns, delving into the social and governance aspects of bitcoin. It emphasizes that btc‘s potential as an ESG asset is not limited to its environmental benefits, but also includes its ability to improve governance and foster social benefits, especially in underdeveloped regions affected by methane emissions.
In conclusion, Batten’s insights suggest that btc not only aligns with ESG criteria, but could also play a critical role in addressing some of the world’s most pressing environmental challenges, making it an attractive option for investors. focused on ESG. bitcoin price could benefit greatly from this emerging narrative.
At the time of publication, btc was trading at $36,272.
Featured image from YouTube @Lugano Plan B, chart from TradingView.com
