Bitcoin advocate rebuts IMF Report on crypto carbon emissions

The International Monetary Fund’s latest report claiming increased carbon emissions from the use of artificial intelligence and crypto has triggered an outcry from Bitcoin advocate Daniel Batten.

The report states that regulators should implement a ‘crypto carbon’ tax due to the alleged environmental impact of Bitcoin (BTC) mining.

Batten argued that the report relied on faulty comparisons and outdated data, and criticized the IMF’s use of the “complicity” technique, equating the carbon footprint of Bitcoin mining to the carbon footprint of AI data centers without contemporary evidence.

Batten cites studies that have shown that Bitcoin mining, unlike AI data centers, has a net decarbonizing effect on energy grids, highlighting these differences.

On the contrary #Bitcoin’s 4-year price and hash rate growth has resulted in network emissions remaining relatively static. This suggests that improving energy efficiency in Bitcoin mining counters the narrative of its growing environmental impact. picture.twitter.com/E9d9kAGxK5

— da-ri (@dari_org) August 12, 2024

Bitcoin mining emissions

Batten also took issue with the IMF’s use of discredited sources and hypothetical models, which he claimed distorted the true environmental impact of Bitcoin mining.

According to Batten, independent data suggests that Bitcoin’s share of global electricity use and carbon dioxide emissions will decline by 2027, contrary to IMF projections.

The advocate called for more honest and accurate research in his tweet, highlighting the growing scientific consensus that bitcoin mining has significant environmental benefits. Batten warns that the IMF report is misleading as it stands and is not a reliable source for policymakers.