A new report appeared on the scene stating that the traditional banking system consumes an amount of energy that doubles Bitcoin’s consumption. The authors of the report analyzed Bitcoin’s energy usage compared to the consumption of traditional banking and gold industries.
“Banking systems consume much more energy than Bitcoin,” was the statement published by Galaxy Digital last week as one of the key takeaways highlighted in a report titled: “On Bitcoin’s Energy Consumption: A Quantitative Approach to a Subjective Question.”
Galaxy Digital, as authors of the report, further explained that the investigation was driven over a quantitative approach, with traditional industries in comparison to Bitcoin’s energy usage. Specifically, within the report there is a dedicated chapter on energy consumption comparison between traditional banking, gold, and bitcoin.
Galaxy Digital Says Bitcoin Still Green
According to Galaxy Digital’s investigation, the Bitcoin industry consumes an estimated 113.89 TWh/yr in total. This estimation of the Bitcoin industry takes in consideration the overall BTC mining demand (miner electricity consumption, pool electricity consumption, and node electricity consumption).
The gold industry uses approximately 240.61 TWh/yr, but the banking system sticks out to consume the most energy, according to Galaxy’s report.
The authors at Galaxy Digital explained that there are four key areas of electricity consumption within the banking system. These are banking data centers, bank branch offices, ATMs, and credit card network’s data centers.”
GD estimates the banking system uses 263.72 TWh of energy on an annual basis.
Time to Dive Deep
In a nutshell, the report concludes highlighting one of bitcoin’s main features: Crypto can provide financial freedom to the world. A passage in the report quotes “The network can benefit the energy sector by creating perfect use cases for intermittent and excess energy. And the network will only scale further if network adoption warrants it.”
Making a point about Energy utilization being not necessarily a “bad thing”, Galaxy Digital investigators are convinced that our species will continue to develop new technologies that consume higher levels of energy, challenging the status quo. GD assures Bitcoin is just another example.
Finally the Galaxy Digital investigator’s team reformulated the original question, as to whether Bitcoin’s network’s electricity consumption is an acceptable use of energy, and their answer was definitely: “yes”.