Nowadays we could not ignore the growing popularity of Cryptocurrency. It’s been only a few years since the first publication made by Andy Greenberg in Forbes Magazine, but the growing demand for this type of asset is enormous. The market is full of investors, who are interested in the development of this sphere. They cumulatively with State Authorities try to create an environment that could allow to conduct trading and feel safe. Even at this point the whole process seems to be effortless and reliable.

Any system could not exist isolated. To meet modern requirements and demands it shall be flexible. So, the question of compliance of cryptocurrency system with principles of Sustainability and ESG is one of the actual questions the society has met. As a result, in some countries like China, the process of mining has been declared outlawed. The main essence of this article is to find out whether all the concerns about cryptocurrency have the reason to exist or not. As an example, we will use information about Bitcoin.

Is cryptocurrency sustainable

So, based on the above-mentioned could we say that Bitcoin is not Sustainable? Of course not, because it is important to find out the source of this energy. Just like other technical devices Bitcoin could be operated with the usage of renewable sources of energy.

Moreover, there is a multinational volunteer organization called BMC one of the main aims of which is to control and perform analytic reports on the matters of sustainability of Bitcoin. The latest report could tell us that participants of the initiative group are currently using electricity with a 67% sustainable power mix. To estimate the percentage easily it is necessary to say that the previous report contained information about 56%. That’s why we could see that the process of shifting from uncontrolled energy consumption to sustainability is quite fast.

Another obvious fact is that Bitcoin involves only energy consumption. In the situation when it will use 100% of renewable sources of energy there will be no need in extracting huge amounts of oil and natural gas to produce energy. energy consumption by itself is more friendly to the environment than mining gold and cutting down trees to produce currency equivalents. Another advantage of bitcoin is that mining farms are mobile, we could transport them to consume energy that is unutilized due to the overproduction of renewable energy or move them to the oil extraction stations to consume natural gas and products of oil recycling process because they are not useful in this activity and they are just burnt without any utility.

Social role of cryptocurrency

Now it is necessary to speak about the Social and Governance agenda because ESG principles don’t consist only of «E- Environment». Bitcoin could be very useful in the means of social cooperation because it gives people a vast opportunity to conduct transactions more freely and without any controlling institutions. Free transactions mean that users by themselves could operate their business environment and would be obliged to comply with general regulations of transaction conducting and not be subjected to any inconvenient rules of financial operators. In other words, there will be only the Seller and the Buyer without any intermediaries with their commissions and other extra charges.

Is cryptocurrency applicable within Illegal transaction

In this section, we will clear the situation with common stereotype that Bitcoin, in particular, a Cryptocurrency as a whole facilitate illegal activity on the Web and Offline

According to the statistical survey conducted by one of the most reliable firms the main activity of which is connected with cybercrimes investigations connected with cryptocurrency. Illegal activity involving Bitcoin is less than 1% of the whole turnover. This situation could be explained very simply. Bitcoin could easily meet all the requirements as to the transparency of the transaction.

Within the course of development of the criterion of transparency of transitions online and development of legal requirements the degree of illegal activity will be decreased to a minimum level.

Conclusion

Does cryptocurrency meet the ESG requirements at this point? The answer is hard to decide. But we could defiantly say that focus of operators is oriented in the right direction and continuous improvements and regimentation will lead to further improvements, so in the short future will see is possible to reach 100% Sustainability and commitment to ESG or not.

Numbers are more eloquent than words. The turnover of Cryptocurrency has increased by 2300% since 2019, which constitutes the growing interest in cryptocurrency.