The year 2020 shook economies and financial markets around the world, creating uncertainty and volatility. This led investors to seek out alternative

Comparing the Carbon Footprint of Gold and Bitcoin

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2021-06-28 18:30:11

The year 2020 shook economies and financial markets around the world, creating uncertainty and volatility. This led investors to seek out alternative assets such as gold or bitcoin to weather the storm. Bitcoin stole the headlines from gold and attracted new investors in record numbers.

While this digital asset may exist in the electronic cloud, its increased adoption and energy use have significant environmental impacts. This infographic sponsored by Prospector Portal takes a look at the carbon footprint of bitcoin and gold.

In early May, the value of the bitcoin market was $1.05 trillion, only 9% of the gold market’s $11.67 trillion value. Despite this, bitcoin performance is rising to challenge gold as an alternative asset in volatile markets.

In 2020, gold delivered a strong return with 25.12% over the year, and reached a historic high of $2,067 per ounce in August. However, the value of bitcoin rose 536.7% between May 2020 and May 2021, outperforming pretty much every asset possible over that timeframe.