Greenpeace, the renowned environmental organization, has officially discontinued accepting Bitcoin donations, citing the substantial environmental impact of the cryptocurrency network’s energy consumption. As one of the first NGOs to integrate Bitcoin into its donation arsenal, the group now reverses its stance amid mounting concerns over the asset’s underlying proof-of-work (PoW) mechanism.
A Decade of Crypto Donations Ends
In a statement released earlier this week, Greenpeace confirmed it would remove the Bitcoin payment option. The organization noted that while it had not received large volumes of Bitcoin contributions, the increasing clarity regarding the network’s energy demands made the previous policy untenable. “As the amount of energy needed to run bitcoin became clearer, this policy became no longer tenable,” Greenpeace emphasized. The NGO initially adopted Bitcoin donations in 2014 via payment processor Bitpay, with no significant environmental concerns at the time.
Proof-of-Work Under Scrutiny
The criticism centers on Bitcoin’s consensus mechanism, proof-of-work, which requires miners to use specialized hardware in a competitive computational arms race. This process consumes vast amounts of electricity. According to estimates from Digiconomist, the Bitcoin network’s carbon footprint rivals that of Portugal, while its electricity consumption matches the Netherlands. The Cambridge Centre for Alternative Finance (CCAF) offers differing figures, but Bitcoin.com News reported in December 2020 that the CBECI map “hasn’t been updated for some time now.”
In the long term, Digiconomist warns that Bitcoin could consume as much energy as all global data centers combined and generate a carbon footprint comparable to London. However, Bitcoin advocates argue that PoW currencies can become more energy efficient. Tesla CEO Elon Musk, who recently suspended Bitcoin payments for Tesla due to environmental concerns, is collaborating with Dogecoin developers to improve the meme coin’s energy profile.
Shifting Environmental Stance
Greenpeace’s decision reflects a broader recalibration within the environmental movement regarding cryptocurrency. Once hailed as a pioneer for embracing digital assets, the NGO now joins a growing list of organizations questioning the ecological cost of PoW networks. The move is expected to intensify pressure on the crypto industry to transition toward low-carbon alternatives, such as proof-of-stake (PoS).
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