Chapter 1: The Push for Change

Greenpeace, an organization dedicated to environmental activism for over fifty years, has now turned its attention to cryptocurrency mining, particularly Bitcoin. With a substantial advertising initiative named “Change the Code, Not the Climate” that boasts a budget of $1 million, they aim to persuade key institutions to advocate for Bitcoin’s transition to the “Proof of Stake” protocol. This comes on the heels of Ethereum's recent migration to the Beacon blockchain, which dramatically decreased its energy consumption by approximately 99.95%.

> “Ethereum has demonstrated that it’s feasible to shift to a less energy-intensive method by transitioning to Proof of Stake, which significantly reduces energy usage and the greenhouse gas emissions associated with energy-intensive protocols like Proof of Work. It’s crucial for Bitcoin and its major stakeholders to take similar action to lessen their dependence on fossil fuels and polluting energy sources, or they risk becoming outdated.” — Ken Cook, President, Environmental Working Group.

It’s clear why this change is appealing to many, which is why organizations are advocating for Bitcoin, the leading cryptocurrency, to follow suit. Greenpeace, along with The Environmental Working Group, is reportedly seeking to influence major firms like Fidelity, BlackRock, and Jack Dorsey’s Block to consider moving Bitcoin to a Proof of Stake system. Such a transition could yield even greater energy savings than those realized by Ethereum.

Section 1.1: The Case for Proof of Stake

Switching to Proof of Stake could theoretically reduce energy consumption by up to 99%. So why not make the change? Greenpeace has hailed Ethereum’s transition as a significant success, which took place on September 6 of this year. However, the implications of this shift are still unfolding.

Proof of Stake is often regarded as a more efficient alternative to Proof of Work, primarily because it requires less hardware and energy. Nonetheless, it can lead to greater centralization of token ownership among large stakeholders, which may undermine its security compared to Proof of Work.

Subsection 1.1.1: The Trade-off Dilemma

Bitcoin mining is known for its substantial electricity consumption, a fact that is generally accepted. However, a deeper examination reveals complexities that are often overlooked. Michael Saylor, Chairman of MicroStrategy, presents several key points regarding Bitcoin’s Proof of Work:

• Energy Utilization: Bitcoin operates on surplus energy generated in remote areas where demand is low, effectively using otherwise wasted resources.
• Comparative Efficiency: Bitcoin mining is recognized as one of the most efficient and cleanest industrial uses of electricity, with 59.5% of its energy sourced from sustainable means and a 46% year-over-year improvement in energy efficiency.
• Unique Approach: Proof of Work is currently the only established method for creating a digital commodity in a fair manner, without pre-mines or controlling entities.
• Value vs. Energy Cost: The network, valued at around $420 billion, utilizes approximately $4–5 billion in electricity, making its energy usage highly efficient compared to traditional industries.
• Carbon Emissions Context: Only 0.08% of global carbon emissions are attributed to Bitcoin mining, making it a minimal contributor to the overall issue.
• Environmental Benefits: Bitcoin can monetize stranded energy sources, presenting potential environmental advantages.

Chapter 2: The Debate Intensifies

Greenpeace Exposes Bitcoin's Climate Damage | Skull of Satoshi - YouTube

This video highlights the environmental impact of Bitcoin mining and the advocacy efforts by Greenpeace to promote sustainable practices in the cryptocurrency sector.

Bitcoin Tells Greenpeace To Go Fork Itself - YouTube

In response to Greenpeace's campaign, this video discusses Bitcoin's resilience and the arguments supporting its Proof of Work model.