Compared to the Gold and banking industry, Bitcoin has lower energy consumption than them.
Galaxy Digital recently released a report with the results of the comparative analysis. It was made between the energy consumption of Bitcoin, Gold and banking industries. Will this clear all the criticisms about Bitcoin’s power consumption ?
The report states that every year Bitcoin consumes 113.89 terawatts, while the gold consumes 240.61 terawatts per year. The banking industry has a higher consumption, it consumes 263.72 terawatts yearly.
Bitcoin’s power consumption has been compared to the yellow metal and the banking industry. This is because the largest cryptocurrency is often compared to the two.
It states that the Bitcoin network consumes a valuable amount of energy. “But this energy consumption is what makes it so robust and secure.”
Is this a problem?
It was also revealed how important energy is for the Bitcoin network and how it can aid in decreasing pollution in the Earth.
Sometimes, critics assume that the energy used by crypto miners is “stolen from more productive use cases, or results in increased energy consumption.”
However, because of energy market disorganizations, miners are incentivized to leverage the energy that can “otherwise be wasted or underutilized.”
Around 2,205 terawatts of the world’s energy production that is wasted every year is also shown in the report.
Bitcoin’s Power Consumption is Criticized
In the past few days, Bitcoin experienced major price drops because of blasts of the massive power required for its mining process. As of now, its price hangs at around $44.8K. And it has been down by almost 20% in the previous week.
The massive price drop was ignited by Tesla CEO Elon Musk’s announcement that the company will no longer accept Bitcoin for payments. The reason for this is because they are concerned about its negative impact on the environment by its power-hungry mining machines.
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