Environmental concerns about the energy-intensive proof-of-work ( PoW ) mechanism that Bitcoin ( BTC ) uses to produce new coins and verify transactions have been at the forefront recently. Debates over Bitcoin's energy consumption have particularly risen after a tweet sent by Tesla CEO Elon Musk in May, saying that his company would no longer accept Bitcoin payments due to the network's "accelerating use of fossil fuels."
Since then, many ways have been discussed for bitcoin mining companies to go green , many of which include using 100% renewable energy sources. For example, Salvadoran President Nayib Bukele recently unveiled plans for a geothermal energy company , allowing bitcoin miners to use its facilities for clean mining.
These initiatives, while innovative, may be easier said than done. Moreover, if these mechanisms were to be achieved, proof of bitcoin's green potential may still be required to show its impact.
To demonstrate true energy savings, Bryan Bullett, CEO of Bit Digital - one of the largest publicly traded Bitcoin mining companies - told Cointelegraph that the company recently submitted to an independent environmental, social and governance (ESG) review. Bullett noted that the international ESG framework is used by many companies and preferred by institutional investors to track and verify companies' environmental standards and compliance.
