Why crypto and ESG go along just fine.

Crypto and sustainability. To many, they still seem like opposites. The image of Bitcoin as an energy-hungry currency is persistent. And because Bitcoin is the most well-known crypto asset, people often assume all of crypto consumes massive amounts of energy. But that perception is outdated. Most modern blockchains are designed to use very little energy. Time for a more nuanced perspective.

Not all blockchains are created equal.

Bitcoin runs on a mechanism called Proof of Work. In this system, computers around the world compete to solve complex problems in order to process transactions and secure the network. That requires a lot of energy. But most modern crypto networks no longer rely on Proof of Work. Instead, they use Proof of Stake.

With Proof of Stake, validators confirm transactions by locking up crypto as collateral. This process is far more efficient and consumes only a fraction of the energy. When Ethereum transitioned from Proof of Work to Proof of Stake in 2022, it reduced its energy usage by more than 99 percent. Blockchains like Solana, Avalanche, and Sui have been energy-efficient from day one.

Crypto as sustainable infrastructure.

Focusing solely on energy usage misses the bigger picture. Crypto is not just a payment technology. It’s a digital infrastructure for global transactions that works 24/7 and removes the need for middlemen. That brings transparency, lower costs, and greater efficiency. And that is sustainability too.

Crypto also contributes to financial inclusion. Hundreds of millions of people around the world lack access to traditional banking services. With a smartphone and an internet connection, they can participate in the digital economy through crypto. That aligns perfectly with the social aspect of ESG goals.

Tokenization is another powerful example. By putting real-world assets on the blockchain, it becomes easier to trade them, offer fractional ownership, and settle transactions in real time. This improves access and creates more efficient markets.

And what about Bitcoin?

Bitcoin remains a unique case. Its energy consumption is high, but that doesn’t automatically mean it’s harmful. More and more Bitcoin miners are switching to renewable energy or using wasted energy from other sources. Think of hydropower in Iceland or surplus gas in Texas.

Bitcoin also plays a distinctive role. It is the only truly decentralized network with no central authority. In many ways, it functions as digital gold. In a world where monetary policy is under increasing pressure, Bitcoin offers an independent foundation. That too can be seen as a form of sustainability: a stable monetary alternative without reliance on states or central banks.

Time to update the narrative.

Crypto and ESG are not at odds. Most blockchains are extremely energy-efficient and contribute to greater transparency, inclusion, and innovation. Of course, the industry must continue to evaluate its impact, but the discussion deserves more nuance than it currently gets.

ESG is not just about CO₂. It’s about building systems that are better, fairer, and more future-proof. And that’s exactly what crypto was designed for.