In a statement to Financial News, the chief investment officer of Square, Amrita Ahuja has stated that the company has no intentions of buying more Bitcoin.
This comes shortly after Square– a financial services and digital payment company, reported a loss on its bitcoin investment to the tune of $20 million. The company is well known for its popular application Cash App which is used to send, store and invest money.
Based On the company’s belief in cryptocurrency as a tool for economic empowerment, the company invested in approximately 4,709 bitcoin which amounted to $50 million. This was one percent of the company’s assets in 2020.
Ahuja further called attention to Bitcoin’s impact on the environment and the need to address its carbon footprint. His concerns have been reflected in numerous reports such as the Bitcoin Energy Consumption Index which claims that cryptocurrencies consume so much energy- between 78TWh and 101TWh.
This amount of energy is consumed during the process of minting new coins. The surge in popularity and use of Bitcoin will create the need for more mining and subsequently more energy consumption. Based on the paper, 480 to 500g of carbon are produced for every kWh consumed. This is as high as the emissions produced in the London metropolitan region.
Elon Musk, Tesla CEO shared similar sentiments while expressing concerns over the negative footprint left in the wake of cryptocurrency adoption. Because of its impact on the environment, he stated that Tesla would no longer accept payment in the form of Bitcoin.