Bitcoin Energy Consumption Compared
According to recent research, Bitcoin’s energy consumption is significantly lower than that of the traditional banking system. The data suggests that Bitcoin uses less than half the energy consumed by the banking system.
Comparison to Banking System
Galaxy Digital’s study estimates that the banking system consumes around 263.72 TWh (terawatt-hours) of energy per year, while Bitcoin’s energy consumption is approximately 113.89 TWh per year. This means that Bitcoin’s energy usage is roughly 43% of the banking system’s energy consumption.
Additional Context
For perspective, the energy consumption of the Bitcoin network can be compared to other payment systems. For instance, VISA’s global operations consume around 740,000 Gigajoules of energy, equivalent to the energy required for approximately 1.4 million Bitcoin transactions.
Key Takeaway
In summary, Bitcoin’s energy consumption is substantially lower than that of the traditional banking system, using less than half the energy. This information provides a more nuanced understanding of the cryptocurrency’s environmental impact.
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