Democratic presidential candidate Robert F. Kennedy Jr. has reiterated his defense of Bitcoin, agreeing with the view that Bitcoin’s environmental impact is exaggerated. Kennedy endorsed a Twitter thread by Daniel Feldman of Sangha Systems which argued Bitcoin mining has a symbiotic relationship with renewable energy that is mutually beneficial. Kennedy called this an “interesting argument” and seems to believe concerns about Bitcoin’s climate impact are overblown.
Sangha Systems is a company involved in Bitcoin mining and blockchain technology. Their mining facility in Illinois is called 82 River North. Sangha also created a “resilience token” with insurance firm Aon.
Kennedy stated that at minimum, environmental concerns should not be used as an excuse to limit people’s freedom to use Bitcoin and other cryptocurrencies. He believes the climate impact argument is a “smokescreen” to restrict financial liberties.
Feldman argued that contrary to media portrayals, Bitcoin mining can improve the electric grid and reduce fossil fuel reliance. He said most renewable energy is not profitable without government subsidies, and investors focus more on maximizing tax credits than energy sales. Feldman believes the climate debate should shift from polarization to innovation. He states Bitcoin mining makes renewable energy profitable without subsidies and encourages renewable energy investment, freeing us from dependence on banks that control tax credits and get bailouts. Overall, Feldman contends Bitcoin mining spurs renewable energy innovation and liberates the industry from the existing subsidy system and big banks.
RFK Jr. and Bitcoin
Although Kennedy has low odds of winning the Democratic nomination, he gained support from Bitcoin maximalists for his pro-crypto views. At Bitcoin 2023, he praised Bitcoin’s value, citing the Canadian government’s freezing of protestors’ bank accounts. Kennedy said supporting Bitcoin protects the civil liberties he wants to guarantee. He has criticized central bank digital currencies as oppressive and prone to abuse. Demonstrating his own investment, Kennedy recently disclosed he purchased 14 Bitcoins, 2 for each of his 7 children. Despite long odds, Kennedy is attracting Bitcoin backers through his libertarian, anti-censorship stance.
The Environmental Impact of Cryptocurrencies
In recent years, Bitcoin’s environmental impact from energy-intensive mining has been heavily debated. The computational power required by the proof-of-work consensus mechanism to mine new coins and verify transactions raises climate concerns. Organizations like Greenpeace USA urge switching to less intensive protocols. However, some experts like Daniel Batten believe Greenpeace uses misleading data to overstate Bitcoin’s harm.
Cambridge data shows global Bitcoin mining uses around 137 terawatt-hours annually, slightly more than Ukraine’s 134. To mitigate concerns, some initiatives promote sustainable mining and renewable energy sources. While the climate impact remains contested, efforts are underway to reduce Bitcoin’s energy footprint through improved practices and technologies.
