A new report shows that the banking system consumes more than twice the amount of energy that bitcoin does. The authors analyzed bitcoinâ€™s energy usage and compared it to the banking and gold industries.
Banking System Consumes Much More Energy Than Bitcoin
Galaxy Digital published a report last week entitled â€œOn Bitcoinâ€™s Energy Consumption: A Quantitative Approach to a Subjective Question.â€ The authors described, â€œThis report took a quantitative approach, comparing Bitcoinâ€™s energy usage to that of other industries.â€
Within the report was an energy consumption comparison between the banking system, gold, and bitcoin.
According to the report, the Bitcoin network consumes an estimated 113.89 TWh/yr in total. The estimate comprises miner demand, miner electricity consumption, pool electricity consumption, and node electricity consumption.
While the report estimates that the gold industry utilizes roughly 240.61 TWh/yr, it says that the banking system consumes the most energy.
The authors noted that â€œThe four key areas of electricity consumption associated within the broader banking system with enough data to establish acceptable estimates are banking data centers, bank branches, ATMs, and card networkâ€™s data centers.â€ They wrote:
In conclusion, the report highlights bitcoinâ€™s features that can offer financial freedom to people worldwide. Moreover, â€œThe network can benefit the energy sector by creating perfect use cases for intermittent and excess energy. And the network will only scale further if network adoption warrants it.â€
Emphasizing that â€œEnergy utilization is not necessarily a bad thing,â€ the authors noted that â€œHumans will continue to find new technologies that require more energy that challenge the status quo. Bitcoin is yet another example.â€ They then revisited the original question:
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