Bitcoin News; According to Galaxy’s estimates, Bitcoin’s annual energy use is 114 TWh, while the banking industry consumes more than 260 TWh each year. Amid ongoing concerns over Bitcoin’s energy consumption, a new study revealed that the traditional banking system consumes much more energy than the Bitcoin network.
Energy reality in Bitcoin – stunning report!
Galaxy Digital, Michael Novogratz’s cryptocurrency firm, published a report titled “A Subjective Question A Quantitative Approach, On Bitcoin Energy Consumption.”
Compiled by Galaxy’s mining arm, the study estimates that Bitcoin’s annual electricity consumption will be 113.89 terawatts per hour, including energy for miner demand, miner power consumption, pool power consumption, and node power consumption. According to Galaxy’s estimates, this amount is at least twice the total energy consumed annually by the banking system and the gold industry.
Energy consumption figures in gold production and banking?
While Galaxy Digital Mining says that Bitcoin’s energy consumption is transparent and easy to track in real time using tools such as the Cambridge Bitcoin Electricity Consumption Index, it is not that easy to assess the energy use of the gold industry and the traditional financial system.
“The banking industry does not directly report electricity consumption data,” the report says, adding that while Bitcoin provides the ultimate solution, the retail and commercial banking system requires multiple settlement layers. Given Galaxy’s estimates of power usage by data centers of banking data centers, bank branches, ATMs and card networks, the total annual energy consumption of the banking system is estimated to be 263.72 TWh worldwide, he adds.
Striking results from Galaxy Digital Mining’s report!
Galaxy Digital Mining announced its estimates for the sector’s total greenhouse gas emissions in the World Gold Council’s report titled “Gold and climate change: current and future impacts” to calculate the energy consumption of the gold industry. As estimated in the study, the gold industry uses around 240.61 TWh per year. “These estimates are calculated by excluding key energy use and emission sources that have secondary effects on the gold industry, such as the energy and carbon intensity of the tires used in gold mines,” Galaxy said.
Galaxy Digital’s analysis of Bitcoin’s energy consumption came amid a major crypto market crash following Tesla CEO Elon Musk’s decision to stop accepting BTC as payment for car purchases due to environmental concerns. The company’s CEO made the following statement on Twitter last week:
“We believe cryptocurrency is a good idea on many levels and has a promising nature, but this is a huge pollution for the environment and the cost is low contrary to what is believed and claimed.”
Musk’s implication and the latest in Bitcoin!
Musk’s move sparked widespread criticism in the crypto community, with some saying that SpaceX would have to turn its rockets into “more sustainable energy” “in order not to look like a big hypocrite with no clue.”
After posting Musk’s announcement on Twitter, Bitcoin is now under $ 43,000 for the first time since early February. Tesla’s hint that he was planning to take Bitcoin off its balance sheet soon put more stress on the market.