Crypto adoption is unrelenting thanks to its decentralized nature, which means there is no single point of control or failure. Cryptocurrency is also global, so it can be used by anyone, anywhere. Additionally, transactions made with cryptocurrency are typically very fast and cheap.
But, it is still relatively new and thus very volatile. And, because crypto is not yet widely accepted, it can be difficult to find places to spend it. Most importantly, crypto’s impact on environmental, social, and governance (ESG) has recently become a point of contention.
ESG Concerns of Crypto
The past decade has seen a growing interest in ESG issues among investors. This trend appears to be driven by many factors, including increasing awareness of the risks associated with climate change and other environmental issues, as well as a growing recognition of the importance of social and governance factors in creating long-term value.
When it comes to cryptocurrencies, ESG generally refers to a coin’s impact on these three areas. For example, a cryptocurrency focused on energy efficiency would be considered to have a strong ESG profile.
So, lauded for their transparency and decentralization, cryptocurrencies have some ESG concerns, too, which need to be considered. For example, the reliance on electricity for mining can lead to environmental concerns, as can the lack of regulation
