Galaxy Digital has revealed a statement about bitcoin electricity consumption, reporting how the asset uses less energy than traditional financial sectors.
The analysts used various calculations to measure the energy needed to power the BTC network compared to gold and banking industries. They said that no one shows concern about energy consumption by traditional industries. Surprisingly, BTC is transparent about the power usage, yet compared to Las Vegas for the carbon footprint. However, companies never disclose their energy usage and the impact on the environment.
Banking and Gold Systems
The authors admitted that the BTC network uses a lot of energy. In defense, the electricity consumed secures the platforms and making the network robust. Digital Galaxy estimates the annual bitcoin electricity consumption to be around 113.89 TWh.
You can hardly estimate electricity usage by banking and gold industries. That is because the systems lack data showing their electricity usage. With that, you will hardly hold an honest talk concerning Bitcoin power consumption.
To calculate gold power consumption, the experts analyzed all processes involved in the asset’s transactions. After considering all the factors, the gold industry’s total electricity consumption amounts to 240.61 TWh/yr.
The report declares that gauging energy consumption by the banking sector is challenging since banks do not provide data on energy consumption. However, the whole process involves bank branches, banking data centers, ATMs, and cards. With all these factors, the banking industry consumes approximately 238.92 TWh/yr, which is 2.3 times the BTC energy usage.
Bitcoin Electricity Usage Debate
This report comes after Tesla decided to stop BTC payments due to environmental concerns. Keep in mind that the BTC energy usage debate has been threading for years. However, the recent headlines seem to have hit differently.
The debate supporting BTC power usage is that the digital coin brings more value, justifying the consumption at some point. Galaxy Digital admits a subjective bitcoin value. However, the report considered the views of both ardent supporters and detractors.
What are your thoughts on BTC power usage compared to traditional systems? You can post your comment below.