# ESG 8/2/23

**Published by:** [Kintsugi Research](https://paragraph.com/@research.kintsugi/)
**Published on:** 2023-08-02
**URL:** https://paragraph.com/@research.kintsugi/esg-8-2-23

## Content

KPMG released a report describing bitcoin’s role in the ESG imperative representing a major narrative shift. Tailwinds We acknowledged the energy industry beginning to embrace bitcoin and ESG validation as a critical step on the path towards more institutional adoption in our B34RM4RK3T memo a year ago. It’s refreshing to see BTC finally taken seriously through an ESG lens:Energy: renewable energy, demand response, recycled heat, and methane reductionSocial: Payments, financial inclusion, Ukraine fundraising, and access to energy in rural AfricaGovernance: Bitcoin is a decentralized system that cannot be abused or misused by those in power or even individuals with ulterior motives.Tyler Cowen concluded in a 2020 follow-up to his book on the Great Stagnation with an observation: “The gains from truly mobilizing the internet may in fact right now be swamping all the accumulated obstacles we have put in the way of progress”. According to this chart from Raoul, Crypto adoption is increasing at a similar rate as the internet was during a comparable phase in its adoption cycle -- and even relative to web2 companies which launched the gig economy, crypto protocols are superior for trustless, incentive aligned coordination of pseudonymous people online.But it’s not all sunshine and rainbows. Headwinds Fitch downgrades US debt. Could be nothing …until it’s something.US debt to GDP ratio expected to reach 118% by 2025 more than 2.5x the median for AAA rated companiesFitch also cites an “erosion of governance” which was a factor in its ratingThe fallout of a reentrancy exploit could devalue CRV and threaten solvency of top Defi protocols as Egorov races to find buyers for his bags.US DOJ still has Binance in its crosshairs. Allegedly hasnt filed charges due to concerns of a run on the exchange. Crypto split in two camps on this one: Binance is either fine OR it’s totally insolvent.MacroEarnings exceed expectations…and fund managers lever up to chase rallyTreasury to borrow $1.85 trillion in Q3 and Q4 2023CryptoBloomberg ETF analysts increase Bitcoin ETF approval odds…and 6 issuers filed Ethereum Futures ETFs https://twitter.com/EricBalchunas/status/1686752210036604928 MKR and COMP led rally in top Defi tokens prior to CRV exploitCrypto x CulturePixar, Adobe, Apple, Autodesk, and Nvidia form Open Alliance for 3d content Skulls of Luci on NG Museum of Mahomes partners with D-O-M for on chain sports collectibles Lvcidia staking season 2 Pudgy Penguin international endcapsOther ReferencesDecrypt: Mahomes launches new NFT collectionWSJ: Benefit of stocks over bonds is shrinkingArthur Hayes: MoaiTBL: Powell to bring the painGlassnode: Is DeFi Back in Business?KPMG: Bitcoin’s role in the ESG imperativeLinux Foundation: Open standards for 3d content78 charts to explain the economyBank failure visualizationMacro Compass: Pulse check on bond marketsMacro Compass: What did you just say?Not Boring: What happened in 2023Fitch downgrades US debtMacro Compass: US Downgrade, now what?Coinshares fund flows

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