Carbon-Neutral Bitcoin for Nation States

Sovereign adoption of bitcoin, whether as legal tender or in treasury reserves, increases the profitability energy-intensive bitcoin mining, creating significant carbon emissions. This paper explores methods for adopting while mitigating eliminating associated We survey three solutions: regulation/taxation, offsetting, and finally, state-directed state-supported carbon-neutral arguing advantages latter. then compare two ways executing this last approach: (1) state must mine all its holdings; (2) same percentage mining holdings. show that is a superior method, nation can adopt manner with relatively small investment mining. At present levels pricing, an annual allocation around 1% state’s holdings towards will suffice, may generate positive return. El Salvador used throughout case study, we make specific suggestions how much should to achieve neutrality respect their