In a post on X on Aug. 16, crypto ESG advocate and researcher Daniel Batten posted a rebuttal to an Aug. 15 IMF report on Bitcoin mining emissions.

Batten argued that the IMF report uses flawed rhetorical techniques, such as 'guilt by association,' by linking Bitcoin mining with AI data centers' energy consumption.

Flawed Rhetorical Techniques

The IMF report, 'Carbon Emissions from AI and Crypto Are Surging, and Tax Policy Can Help,' bundled crypto and AI together and labeled them as 'power hungry' environmental threats.

Batten said these attack pieces often come from entities that stand to lose from Bitcoin adoption, namely central banks.

'With the scientific consensus and mainstream journalism now concluding that Bitcoin mining has significant environmental benefits, those who stand to lose most from mainstream adoption of Bitcoin (IMF, Central Banks) need to resort to direct attack-pieces,' Batten stated.

Environmental Impact of Bitcoin Mining

Batten claimed that, unlike AI data centers, Bitcoin mining has been shown to impact power grids positively.

Research has demonstrated that flexible data centers, such as Bitcoin mining operations, have a net decarbonizing impact on grids. In contrast, inflexible data centers, such as those used for AI, have a net carbonizing impact.

He pointed out that the IMF's data sources revealed that by 2027, crypto's share of global electricity use and its share of global CO2 emissions will have decreased.

However, both will have increased for the AI industry. Batten also criticized the IMF for relying heavily on discredited or debunked authors like Alex de Vries and dated information from 2022 from Cambridge University.

Call for Dismissal of IMF Report

Batten concluded that any reports from the IMF 'should be disregarded as being of a low research standard' and unusable to policymakers and regulators. 'This is super informative. Thanks for writing,' replied US Senator Cynthia Lummis.

IMF's Tax Proposal

The IMF's Fiscal Affairs deputy division chief Shafik Hebous and climate policy division economist Nate Vernon-Lin wrote that a per kilowatt hour tax 'would drive the crypto mining industry to curb its emissions in line with global goals.'

They claimed that a higher tax would increase the average electricity price for crypto miners by 85%. This would also increase yearly global government revenue by $5.2 billion and reduce emissions by 100 million tons annually.