Why invest in renewables instead of bitcoins

Research undertaken by Kaiserwetter reveals how renewable energy represents a better medium-term investment compared to digital currencies. Big investors and financial giants have already opposed cryptocurrencies such as the bitcoin on many occasions, while renewable energy continues to attract support around the world. This is clearly demonstrated by global annual investment in renewables, headed up by China, which amounts to almost US$3 billion and the fact that in the USA, 1 out of every 5 dollars invested goes into sustainable investments. The study has moreover found that cryptocurrencies use a significant amount of energy – 36 TWh/year, equivalent to the consumption of an intermediate country such as Colombia or Bulgaria.

Since the first cryptocurrency – the bitcoin – was launched in 2009, the number of digital currencies has multiplied, giving rise to a roller coaster of ups and downs in their value. Just from November to December, the bitcoin rose to 20,000 dollars from 6,000, from which it fell back to its lowest level on 6 February, recently returning to just above 10,000 dollars. According to an analysis by German company Kaiserwetter, an asset management specialist that integrates the technical and financial aspects of renewable energies by using the latest in digital technology and the Internet of Things, renewables are shown to be an investment with a better medium-term outlook compared to digital currencies.

Digital currencies are already facing a strong reaction from official regulators due to the fact they are a currency that does not enjoy government support; they have no intrinsic value unlike gold (algorithms can be changed but geology cannot) and, also, because of their environmental impact. This is possibly the reason why large investors, including Warren Buffett, recommend staying away from this investment: “I can say almost with certainty that they will come to a bad ending”, he stated, while coming out in favour of renewable energies. Buffett announced at the last general meeting of Berkshire Hathaway that if anyone were to step through the door with a solar project of US$1 or 3 billion, then he would be ready to invest in it. Buffett is very much involved in the investment for the world’s largest solar project, the 579 MW Antelope Valley Solar Project. Read more…

Article published in: FuturENERGY March 2018