Insights

Bitcoin Net Zero

September 22, 2021  |  5 minute read
Bitcoin offers the world an alternative – a sound monetary system outside the control of governments and central banks.

By Ross Stevens and Nic Carter

In 1971, the world’s major economies lost their final tether to gold, entering a fully fiat monetary standard. Under this fiat model, inflation has been structurally higher, financial crises no less ruinous, and real growth no higher than under the gold standard. Today, inflation and monetary instability interfere with the ability of billions of individuals worldwide to store their wealth. Bitcoin offers the world an alternative – a sound monetary system outside the control of governments and central banks. Our report considers the merit of Proof of Work, quantifies Bitcoin’s resource costs, and examines pathways towards mitigating the externalities associated with mining.

Report highlights

  • Bitcoin’s environmental impact is small when compared to global energy consumption and other technological innovations. Putting the second quarter in context is critical, though, as bitcoin just came off 4 consecutive quarters of stellar performance.
  • Bitcoin solves issues introduced by fiat monetary systems that have historically wiped out the wealth of the world’s most disadvantaged people. Headlines dominated the quarter, including Tesla’s about-face, China’s crackdown, El Salvador’s adoption, Taproot activation, and numerous banks & banking partners gearing up to enable client access to bitcoin.
  • The proof-of-work system through which miners compete to assemble transactions in a shared global ledger is electricity intensive by design and critical to network operation and security.

Learn more from FS | NYDIG

Subscribe to receive insights about Bitcoin.

Let's connect

Discover how you can unlock the power of Bitcoin.

View important footnotes + disclosures

This report has been prepared solely for informational purposes and does not represent investment advice or provide an opinion regarding the fairness of any transaction to any and all parties nor does it constitute an offer, solicitation or a recommendation to buy or sell any particular security or instrument or to adopt any investment strategy. Charts and graphs provided herein are for illustrative purposes only. This report does not represent valuation judgments with respect to any financial instrument, issuer, security or sector that may be described or referenced herein and does not represent a formal or official view of New York Digital Investment Group or its affiliates (“NYDIG”).

It should not be assumed that NYDIG will make investment recommendations in the future that are consistent with the views expressed herein, or use any or all of the techniques or methods of analysis described herein in managing client accounts. NYDIG may have positions (long or short) or engage in securities transactions that are not consistent with the information and views expressed in this report.

There can be no assurance that any investment strategy or technique will be successful. Historic market trends are not reliable indicators of actual future market behavior or future performance of any particular investment, which may differ materially, and should not be relied upon as such. Target or recommended allocations contained herein are subject to change. There is no assurance that such allocations will produce the desired results. The investment strategies, techniques or philosophies discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation.

The information provided herein is valid only for the purpose stated herein and as of the date hereof (or such other date as may be indicated herein) and no undertaking has been made to update the information, which may be superseded by subsequent market events or for other reasons. The information in this report may contain forward-looking statements regarding future events, targets, or expectations regarding the strategies, techniques or investment philosophies described herein. NYDIG neither assumes any duty to nor undertakes to update any forward-looking statements. There is no assurance that any forward-looking events or targets will be achieved, and actual outcomes may be significantly different from those shown herein. The information in this report, including statements concerning financial market trends, is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons.

Information furnished by others, upon which all or portions of this report are based, are from sources believed to be reliable. However, NYDIG makes no representation as to the accuracy, adequacy or completeness of such information and has accepted the information without further verification. No warranty is given as to the accuracy, adequacy or completeness of such information. No responsibility is taken for changes in market conditions or laws or regulations and no obligation is assumed to revise this report to reflect changes, events or conditions that occur subsequent to the date hereof.

Nothing contained herein constitutes investment, legal, tax or other advice nor is it to be relied on in making an investment or other decision. Legal advice can only be provided by legal counsel. Before deciding to proceed with any investment, investors should review all relevant investment considerations and consult with their own advisors. Any decision to invest should be made solely in reliance upon the definitive offering documents for the investment. NYDIG shall have no liability to any third party in respect of this report or any actions taken or decisions made as a consequence of the information set forth herein. By accepting this report in its entirety, the recipient acknowledges its understanding and acceptance of the foregoing terms.

Print this page
Email this page

Related insights

image_Blocks-18-SML

March 2023 Bitcoin Brief

Bitcoin was explicitly designed for today’s market environment, and it delivered strong performance in the first quarter of 2023. Bitcoin ended the quarter above $28,000 and up 72% YTD, making it bitcoin’s best performing quarter since 1Q21.

Read More