A new report shows that the banking system consumes more than double the amount of energy that bitcoin consumes. The authors analyzed bitcoin's energy use and compared it to the banking and gold industries.
The banking system consumes much more energy than Bitcoin
Galaxy Digital released a report last week titled "Bitcoin's Energy Consumption: A Quantitative Approach to a Subjective Demand". The authors described: "This report has taken a quantitative approach, comparing the energy use of Bitcoin with that of other sectors."
Within the report there was a comparison of the energy consumption between the banking system, gold and bitcoin. According to the report, the Bitcoin network consumes around 113,89 TWh per year in total.
The estimate includes the miner's demand, the miner's electricity consumption, the pool's electricity consumption, and the node's electricity consumption.
While the report estimates that the gold industry uses around 240,61 TWh per year, it states that the banking system consumes most of the energy among the three.
The authors noted that “The four key areas of electricity consumption associated within the broader banking system with sufficient data to establish acceptable estimates are bank data centers, bank branches, ATMs and network data centers. cards ". They stated that: “We estimate that the banking system uses 263,72 TWh of energy every year”.
In conclusion, the report highlights the characteristics of bitcoin, which can offer financial freedom to people around the world. Furthermore, “The grid can benefit the energy sector by creating perfect use cases for intermittent and excess energy. And the network will only expand further if the adoption of the network requires it ”.
Emphasizing that "Energy use is not necessarily a bad thing". The authors also noted that “Human beings will continue to find new technologies that require more and more energy and that challenge the status quo. Bitcoin is just another example ”. They then revisited the original question: “Is the electricity consumption of the Bitcoin network an acceptable use of energy? Our answer is definitive: yes. "
But how to mine and trade bitcoins?
Is it worth taking an interest in bitcoin mining right now, or is it worth focusing directly on trading? Mining is not easy, especially bitcoin. And for this reason, also because energy in Italy costs a lot compared to the rest of Europe, we recommend trading.
Especially in this historical moment, in which the digital currency is in slight retreat, it is the best opportunity to buy it. To do this, you can use platforms such as Bitcoin Revolution which allow you to invest reasonable amounts of money.
For this reason, even beginners can enter this world on tiptoe, taking advantage of the “Buy the Dip” opportunity, which means buying when the coin drops.
And what do you think of energy consumption and environmental concerns, to which Elon Musk also gave a voice in recent days. As always, we await your comments!