Gold consumes more energy than Bitcoin!
Galaxy Digital recently released a white paper, it shows that Bitcoin’s annual energy consumption is preferably lower than that of gold and the largest companies in the banking industry.
Mining Bitcoin uses lesser energy than Gold Mining
Calculating Bitcoin’s energy usage is easy unlike retrieving data for energy usage of the gold industry for it is not open publicly.
Gold uses around 240.61 TWh/yr when using the conversion from GHG Emissions to kWh/yr with the Global IEA carbon intensity multiplier. It is more than double that of Bitcoin. The computations don’t include second order effects like production and discarding of vehicle tires and other materials that were used by the industry.
Bitcoin takes lesser Energy than Gold
Banking uses around 263.72 TWh/yr. It includes energy used by banking data centers, bank branches, ATMs, and card network’s data centers. A broad number would require individual banks to self-report about their electricity usage.
Bitcoin uses around 113.89 TWh/yr which is noticeably lower than the usage of both other industries.
It has been also said that 50% of Chinese bitcoin mining initiatives are using renewable energy sources and many use offset electricity.
Cleaning up wastage can power the Bitcoin network. The amount of energy lost in transmission and distribution is 19.4x that of the Bitcoin network.
Bitcoin and Ethereum will go eco-friendly (somehow)
A lot of new technologies that have high energy consumption become more eco-friendly. Bitcoin and Ethereum started taking steps towards this.
Ethereum 2.0 switches from proof-of-work to proof-of-stake to use 99% less electricity. And Bitcoin mining operations have switched to carbon neutral systems.
Bitcoin price’s recent drop has been because of Elon Musk’s debate with Michael Saylor about Bitcoin’s environmental impact. Maybe this is something that cryptocurrencies can address soon.
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