A new report shows that the banking system consumes more than twice as much energy as Bitcoin. The authors analyzed Bitcoin's energy consumption and compared it to the banking and gold industries.
The banking system consumes much more energy than bitcoins
Last week, Galaxy Digital published report, titled "On Bitcoin's Energy Consumption: A Quantitative Approach to a Subjective Question". The authors describe: "This report takes a quantitative approach, comparing Bitcoin's energy consumption to that of other industries."
Within the report, there was a comparison of energy consumption between the banking system, gold and bitcoin.
According to the report, the Bitcoin network consumes approximately 113.89 TWh / year in total. The assessment includes miner demand, miner electricity consumption, pool electricity consumption and node electricity consumption.
Although the report estimates that the gold industry uses approximately 240.61 TWh/year, it says that the banking system consumes the most energy.
The authors note that "The four key areas of power consumption associated in the broader banking system with sufficient data to establish acceptable estimates are bank data centers, bank branches, ATMs, and card network data centers." They wrote:
We estimate that the banking system uses 263.72 TWh of energy each year.
In conclusion, the report highlights the features of Bitcoin that can offer financial freedom to people around the world. What's more, “The grid can benefit the energy sector by creating ideal use cases for intermittent and redundant energy. And the network will scale further only if network adoption requires it. "
Emphasizing that “Using energy is not necessarily a bad thing,” the authors note that “People will continue to find new technologies that require more energy that challenge the status quo. Bitcoin is another example. They then revisited the original question:
Is Bitcoin Network Energy Consumption Acceptable? Our answer is an emphatic yes.
What do you think about this research? Let us know in the comments section below.
Source : bitcoinnews