{"id":251418,"date":"2021-05-17T11:09:31","date_gmt":"2021-05-17T08:09:31","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/banking-system-consumes-two-times-more-energy-than-bitcoin-research\/"},"modified":"2021-05-17T11:09:31","modified_gmt":"2021-05-17T08:09:31","slug":"banking-system-consumes-two-times-more-energy-than-bitcoin-research","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/banking-system-consumes-two-times-more-energy-than-bitcoin-research\/","title":{"rendered":"# Banking system consumes two times more energy than Bitcoin: research"},"content":{"rendered":"

“# Banking system consumes two times more energy than Bitcoin: research <\/strong>”<\/p>\n

Amid the ongoing concerns over Bitcoin’s (BTC) energy consumption, a new study states that the traditional banking system consumes much more energy than the Bitcoin network.<\/p>\n

Michael Novogratz\u2019s cryptocurrency firm Galaxy Digital released<\/a>\u00a0a report Friday titled \u201cOn Bitcoin\u2019s Energy Consumption: A Quantitative App<\/a>roach to a Subjective Question,\u201d providing<\/a> open-source access to its methodology and calculations.<\/p>\n

Compiled by Galaxy\u2019s mining arm, the study estimates<\/a> Bitcoin\u2019s annual electricity consumption to stand at 113.89 TWh, including energy for miner demand, miner power consumption, pool power consumption, and node power consumption. This amount is at least two times lower than the total energy consumed by the banking system as well as the gold industry on an annual basis, according to Galaxy\u2019s estimations.<\/p>\n

Source: Galaxy Digital<\/em><\/figcaption><\/figure>\n

While Bitcoin\u2019s energy consumption is transparent and easy to track in real time using<\/a> tools like Cambridge Bitcoin Electricity Consumption Index, the evaluation of energy usage of the gold industry and the traditional financial system is not that straightforward, Galaxy Digital Mining stated.<\/p>\n

\u201cThe banking industry does not directly report electricity consumption data,\u201d the report says, adding that the retail and commercial banking system requires multiple settlement layers, while Bitcoin offers final settlement. Given Galaxy\u2019s estimations of power usage by banking data centers, bank branches, ATMs, and card network\u2019s data centers, the total annual energy consumption of the banking system is estimated to be 263.72 TWh globally.\u00a0<\/p>\n

In order to calculate the energy consumption of the gold industry, Galaxy Digital Mining implemented estimates for the industry\u2019s total greenhouse gases emissions provided in the World\u2019s Gold Council\u2019s report titled<\/a> \u201cGold and climate change: Current and future impacts.\u201d As estimated in the study, the gold industry utilizes roughly 240.61 TWh per year. \u201cThese estimates may exclude key sources of energy use and emissions that are second order effects of the gold industry like the energy and carbon intensity of the tires used in gold mines,\u201d Galaxy noted.<\/p>\n

Galaxy Digital\u2019s analysis on Bitcoin\u2019s energy consumption comes amid a major crypto market crash that follows Tesla CEO Elon Musk\u2019s decision to stop accepting BTC as payment for car purchases due to environmental concerns. \u201cCryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment,\u201d the CEO wrote on Twitter<\/a> last week.<\/p>\n

Musk\u2019s move spurred wide-scale criticism from the crypto community, with some stating that SpaceX would have to switch it rockets to \u201cmore sustainable energy\u201d in order to not \u201clook like a clueless big hypocrite.\u201d<\/p>\n

Crypto markets shed over $500 billion after Musk took to Twitter with his announcement, with Bitcoin today slipping<\/a> below $43,000 for the first time since early February. The exec apparently brought more stress to the market by hinting that Tesla has plans to dump Bitcoin from its balance sheet soon.<\/p>\n