CRAZY!! Bitcoin ESG Report: It’s NOT What You Think!!

Bitcoin is now ESG friendly at least According to KPMG The Firm made this Argument in a recent report and it's Significant considering that the big Four accounting firms like KPMG have Been involved in setting ESG criteria It's also significant considering that BlackRock recently filed for a spot Bitcoin ETF and BlackRock has been Pushing ESG the most the KPMG report Could therefore shed some light on Blackrock's Pro crypto shift That's why today we're going to Summarize the report tell you what it Says and explain exactly what it could Mean for the crypto Market spoiler it Might not be as bullish as you think Let's start as ever with a bit of Background as most of you will know ESG Stands for environmental social and Governance it's an investment Trend that Focuses on these criteria within Companies the lack of focus around Economic criteria is why ESG is best Described as an ideology If you watched our first video about ESG You'll know that it was reportedly the Reason why crypto crashed back in May 2021 ESG investors believed that BTC was Not ESG friendly for environmental Reasons however our research suggests They were more concerned about btc's Governance AKA control in short ESG Investors didn't like that Bitcoin is

Difficult to influence and impossible to Control That's because Bitcoin uses proof of Work this means that ESG investors would Have to simultaneously control the Bitcoin miners the Bitcoin developers And the Bitcoin community in order to Therefore control Bitcoin by contrast All ESG investors must do to control Proof-of-stake cryptocurrencies is buy Up enough stake to take control of the Blockchain this is theoretically Possible since big ESG investors like BlackRock literally have trillions of Dollars of assets This is probably why proof of stake is Seen as more ESG friendly even so However this hasn't stopped ESG Investors from trying to influence Bitcoin in the ways I just described for Example Vanguard another ESG obsessed Asset manager already holds hundreds of Millions of dollars off Bitcoin mining Stocks This means it likely has a say in how The biggest Bitcoin miners operate Meanwhile BlackRock has been getting Uncomfortably close to the largest Crypto companies namely coinbase and Circle it partnered with coinbase last Summer to provide crypto trading to Institutions and invested 400 million Dollars in circle last spring BlackRock Also manages usdc's massive reserves

More recently of course BlackRock filed For a spot Bitcoin ETF with coinbase Custody as its custodian its track Record of ETF approvals suggests Eventual approval is inevitable now in Theory blackrock's BTC Holdings won't Affect Bitcoin in practice though it Could affect Bitcoin if the ETF comes to Hold most of the BTC in circulation Consider a scenario where Bitcoin Undergoes an upgrade that ESG investors Don't like BlackRock could use its Influence over crypto exchanges stable Coins and ETFs to support a Bitcoin fork And Vanguard could use its influence Over the largest crypto miners to ensure The new Bitcoin Fork is adopted never Mind the fact that an ESG ratings firm Is reportedly in the process of Gathering the names of the most Influential Bitcoin developers anyway Hypotheticals aside this begs the Question of why ESG investors have Recently changed their tune on bitcoin Despite their apparent governance Concerns well there are actually two Answers the first answer is that ESG Investors seem to have changed their Minds about a lot of different assets Over the last year for context Industries seen as off limits by ESG Investors included weapons manufacturers And nuclear energy well Russia's Invasion of Ukraine has magically turned

Weapons manufacturers ESG friendly and The resulting energy shortage in Europe Has magically made nuclear energy ESG Friendly too how about that At the same time genuinely ESG friendly Companies like Tesla have been kicked Out of ESG indices and research suggests That ESG friendly companies pollute just As much as non-esg friendly companies This just underscores the fact that ESG Is an ideology rather than a legitimate Investment strategy Now the second answer is specific to Bitcoin and this is where the KPMG Report comes in now the report is titled Quote bitcoin's role in the ESG Imperative and it was published earlier This month we'll leave a link to the Full report in the description if you're Interested so the report begins with a Brief introduction wherein the authors Argue that Bitcoin is misunderstood Which is an understatement They explain that the report seeks to Address these misconceptions through the Lens of ESG and how Bitcoin could do Better on ESG metrics The authors then provide a short primer On Bitcoin mining what's fascinating is That it makes no mention of the Environmental impacts associated with Proof of work instead it points out that Someone would need to control 50 of Bitcoin's hash rate to take control of

Its blockchain remember what I said About ESG investors being concerned About governance AKA control Anyways the first part of the report Talks about the environmental aspects of Bitcoin The authors start by saying that Bitcoin's impact on the environment has Been a point of contention which is even More of an understatement the earlier Studies about bitcoin's environmental Impact were extremely biased case in Point the author's site at 2017 study Which claimed that Bitcoin mining would Use all of the world's energy by 2020. This claim was subsequently circulated By The Usual Suspects such as the world Economic Forum which some of you will Know has played a significant role in The ESG rollout In any case the authors note that Bitcoin mining only consumes around 0.5 Of the world's energy and highlight the Fact that this is equivalent to the Amount of energy used by clothes dryers This is more evidence to the idea that ESG investors aren't that concerned About bitcoin's environmental criteria Not only that but the authors even Showcase an incredible infographic which Shows how little carbon emissions are Associated with Bitcoin mining to put Things into perspective gold mining Emits almost twice as much carbon as

Bitcoin mining and even gold mining Emissions are negligible the authors go On to describe the different ways that Bitcoin could reduce its already Minuscule carbon footprint the first way Is to use more renewable energy Something that's already being done by Many Bitcoin miners in the United States Bitcoin mining can also be used to Subsidize intermittent renewable energy Sources On that note it's important to point out That any renewable energy requirements Around Bitcoin mining could become a way To get more control of Bitcoin some of You might remember that microstrategy CEO Michael Saylor unveiled the Bitcoin Mining Council after the ESG fueled Crash of May 2021 now at first glance This seems like a great initiative upon Closer inspection however creating a Centralized agency that essentially Keeps track of where every Bitcoin miner Is in the United States and what energy They're using makes it very easy for Investors or Regulators to Target ESG Unfriendly operations Anyhow regardless the second way that Bitcoin could reduce its already Minuscule carbon footprint is by helping Manage the supply and demand imbalances In energy grids in plain English Bitcoin Miners can be turned on when there is Extra power and turned off when there is

A shortage of power The Third Way that Bitcoin could reduce Its already minuscule carbon footprint Is by recycling heat for reference Bitcoin miners emit lots of heat which Is often wasted this heat could be used For everything from heating swimming Pools to heating greenhouses many Bitcoin miners are doing this already The fourth way that Bitcoin could reduce Its already minuscule carbon footprint Is by using flared gas as its energy Source for those unfamiliar flared gas Is gas that's burned because it can't be Used The authors cite a study which found That the entire Bitcoin blockchain could Be powered by U.S gas flaring of course They make no mention of the fact that Having all of bitcoin's hash rate in the US would present a serious Centralization issue for its blockchain And make it vulnerable to institutional Capture Anywho the second part of the report Concerns the social criteria of Bitcoin The authors start by saying that most of The social concerns around Bitcoin have Their roots in illicit Finance they're Quick to cite a study by Chain analysis Which found that only 0.25 of crypto Transactions are related to illicit Finance and we actually summarize that Chain analysis report the link to the

Video will be down in the description Now the authors can trust this crypto Statistic with the finding that between Two and five percent of global GDP is Used for just money laundering and if You think that's crazy it's estimated That up to 40 of this money laundering Takes place in the United States using Mostly US Dollars and other Fiat Currencies What's cool is that the authors also Contrast btc's illicit Finance use to Other popular cryptocurrencies as you Can see BTC is used significantly less For illicit Finance than stable coins Eth and other altcoins note that illicit Finance use among these cryptos will Decline as a percentage as their Adoption increases As a cherry on top the author's cite Statements made by law enforcement Authorities about how it's much easier To track crypto transactions than Fiat Transactions that's because almost all Crypto transactions are publicly Viewable and if you completed kyc on an Exchange well they can find you The authors go on to describe the Different ways that Bitcoin could Improve its social criteria the first is Payments and remittances something that Bitcoin is already helping with in many Developing countries if you watched our Recent video about Nigeria you'll note

That up to half of the country uses Bitcoin the second way that Bitcoin can Improve its social criteria is Apparently providing economic and Military Support to U.S allies being Attacked by U.S enemies that's because The authors specifically cite Ukraine Fundraising as that second way remember That the other ESG changes also seem to Be related to the war in Ukraine Anyway conspiracy theories aside the Third Way that Bitcoin can improve its Social criteria is by helping to Increase access to electricity in rural Areas that's because Bitcoin miners can Set up shop anywhere and act as a base Load consumer that can make setting up Energy sources in rural areas economical Again what's amazing is that the Author's cite a study which found that Using Bitcoin mining to help balance Energy grids in rural areas reduced Energy costs by 30 percent it's safe to Assume that whoever was mining Bitcoin In these areas also made a decent profit And contributed to the local economy The fourth way that Bitcoin can improve Its social criteria is by facilitating Financial inclusion oddly enough the Authors spend this entire subsection Talking about how Bitcoin makes it Possible for people to flee countries With their wealth all you need is the Seed phrase to your Bitcoin wallet

What's even more odd is that the authors Ask the question of quote can bitcoin's Adoption as a medium of exchange Continue despite its volatility This is peculiar because the definition Of money is an asset that's used as a Medium of exchange a store of value and A unit of account some would say that The authors are implying that Bitcoin is Starting to meet the first criteria Bitcoin arguably meets the second Criteria already and it could meet the Third criteria once central banks start Holding BTC on their balance sheets you Can learn more about that using the link In the description anywho the third part Of the report is about bitcoin's Governance grade by now you'll know that This appears to be the most important Component for ESG investors funnily Enough this is the shortest part of the Entire report and the authors make no Suggestions on how governance can be Improved rather they emphasize the fact That Bitcoin is analogous to TCP IP the Protocol that underlies the internet They explain that any adjustments to Tcpip would cause serious issues for the Internet and claim that the same is true Of Bitcoin any changes to the protocol Could cause confidence to collapse they Specify quote if a participant attempted To modify these rules they would Effectively be running a different

Version of Bitcoin or an entirely Different protocol and in turn would be Unable to participate or transact on the Network They argue that this is a governance Feature not a governance bug Anyway the authors then recount what Happened during the so-called block size Wars which began back in 2015. the tldr Is that a handful of institutional Investors and institutionally oriented Crypto companies tried and failed to Increase bitcoin's block size The result was a series of Bitcoin Forks Most of which have disappeared some Would say that the authors are warning ESG obsessed asset managers like BlackRock and Vanguard that their not so Subtle attempts to influence Bitcoin Could backfire this could be more than Speculation because the authors conclude The section about governance with the Following quote this results in a system That cannot be abused or misused by Those in power or even individuals with Ulterior motives due to its Decentralization probably nothing Speculation aside the authors conclude By saying that Bitcoin has serious ESG Related benefits and seemed to imply That these benefits will increase as BTC Becomes a more mature asset the authors Also ask a series of ESG related Questions to any readers who are working

In the Bitcoin ecosystem these questions Basically call on bitcoin related Companies to commit to ESG This is surprising considering that even BlackRock has started distancing itself From ESG The scary thing is that many crypto Companies and projects remain committed To ESG regardless I guess they missed The memo speaking of which it seems that Some countries have missed the memo as Well for instance the EU is in the Process of rolling out its ESG Regulations This is even scarier because it Foreshadows an inevitable Resurgence in ESG and potentially renewed attempts to Control uncontrollable assets like Bitcoin's BTC You can learn more about the eu's Upcoming ESG regulations and how they Could affect you using the link in the Description Now this all brings us to the big Question and that's what bitcoin's Sudden ESG appeal could mean for the Crypto Market the answer ultimately Depends on why Bitcoin has suddenly Become appealing to ESG investors the KPMG report suggests that it could just Be because they've become aware of the Benefits however a recent interview with BlackRock CEO Larry Fink suggests There's more to this story when asked

About why BlackRock was bullish on Bitcoin Larry said that the asset Manager is a quote big believer in the Digitization of products and said that Bitcoin is like quote digitizing gold He added that Bitcoin is a quote International asset and a quote Alternative asset Larry even Acknowledged that he was against Bitcoin Back in the day but claims this was Because of all the illicit Financial Activity in crypto at the time now that That has come down he's jumped aboard The Bitcoin train though he doesn't Actually hold any BTC himself now Larry's comments about Bitcoin don't Seem that significant in isolation but When you combine them with comments he Also makes about the economy blackrock's Bitcoin adoption starts to make perfect Sense for starters Larry believes that Inflation will stay higher than people Expect as a result interest rates will Go higher than people expect This will create lots of stress in Commercial real estate now if you Watched our video about commercial real Estate you'll know that most of its Related debt is held by small and Medium-sized Banks Larry knows this too Perhaps he saw that video and predicts Many of them will go down But Larry does not believe this will Result in a credit crisis this is simply

Because the U.S government continues to Stimulate the economy via fiscal policy Larry estimates that we are only five Percent into the US government's current Spending cycle and that we will see Quote extraordinary stimulus In Sum We're entering a period of high Inflation and lots of economic Volatility particularly in the financial System so what's the best hedge in this Environment obviously an asset analogous To Gold that exists outside of the Financial system and is also available Globally because this will happen Everywhere in Larry's words a digital Gold an international asset an Alternative asset Bitcoin This is why BlackRock is adopting BTC And why other asset managers are Following suit at the end of the day These entities exist to make money and They can see the writing on the wall BTC Will outperform everything this is a Logical conclusion considering that BTC Has technically been the best performing Asset in recent decades and it's going To become a self-fulfilling prophecy When the real institutional allocation Begins If you're wondering how big the crypto Market can get consider the following Headline quote blackrock's assets seen Topping 15 trillion dollars in five Years time FYI lacrock currently has

Around 10 trillion dollars in assets Under management so where is it going to Get another 5 trillion from in such a Short period of time Probably crypto starting with BTC other Cryptos will eventually follow suit Now as terrifying as crypto's actual Institutional adoption is going to be It's going to provide an unprecedented Opportunity for those who got in early If you're watching this you my friend Are early just be aware that it's going To be a very bumpy ride there's still Lots that crypto needs to get sorted out But make no mistake the next crypto Bull Run will be unlike anything investors Have ever seen And that's all for today's video if you Found it informative let me know by Smashing that like button if you want to Make sure you keep being informed Subscribe to the channel and ping that Notification Bell If you want to help inform others be Sure to share this video with them and Tell them to subscribe to if you're Already stacking sets make sure you're Doing so using a trustworthy exchange And storing them on a secure Bitcoin Wallet the coin Bureau deals page Happens to have up to forty thousand Dollars of bonuses and incentives on the Best exchanges and the biggest discounts On the best wallets link is down in the

Description as always thank you for Watching and I'll see you next time till Then my friends stay cool stay out of Trouble and stay crypto [Music]

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