A new report shows that the energy consumed by the banking system is more than twice that of Bitcoin. The author analyzed the energy usage of Bitcoin and compared it with the banking and gold industry.
The banking system consumes more energy than Bitcoin
Galaxy Digital released a report last week titled “On Bitcoin’s Energy Consumption: A Quantitative Approach to Subjective Issues.” The author said: “This report uses a quantitative method to compare the energy use of Bitcoin with the energy use of other industries.”
The report is a comparison of energy consumption between the banking system, gold and Bitcoin.
According to the report, the Bitcoin network consumes an estimated total of 113.89 TWh/year. The estimate includes miner demand, miner power consumption, pool power consumption, and node power consumption.
The report estimates that the gold industry uses approximately 240.61 TWh per year, but it says the banking system consumes the most energy.
The authors point out that “within the broader banking system with sufficient data to establish acceptable estimates, the four key areas related to electricity consumption are bank data centers, bank branches, ATM and card network data centers.” They wrote:
We estimate that the banking system uses 263.72 TWh of energy per year.
In short, the report focuses on Bitcoin’s functions that can provide financial freedom to people all over the world. In addition, “the network can create perfect use cases for intermittent and surplus energy, thereby benefiting the energy sector. Moreover, the network can only be expanded further if its adoption is permitted.”
The author emphasized that “energy use is not necessarily a bad thing” and pointed out that “human beings will continue to search for new technologies that require more energy, which poses a challenge to the status quo. Bitcoin is another example.” Then, they re-examined the original The problem:
Is the electricity consumption of the Bitcoin network acceptable? Our answer is yes: yes.
What do you think of this research? Let us know in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons, Galaxy Digital
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