There has been a lot of talk recently about bitcoin and its environmental consequences. Some sites even suggest that the ecological impact of Bitcoin alone would be estimated at 168.9 tons of CO2. Bitcoin’s energy expenditure is also often compared to global electricity production. What if we compared it with the traditional payment system? Does Bitcoin really corrupt?
According to the founder of Valuechain, Bitcoin consumes energy. On the other hand, it is less energy intensive than traditional payments.
Yes, Bitcoin pollutes and consumes energy! But…
More and more environmentalists are pointing the finger at bitcoin or more precisely at Proof of Work (PoW). The main reason: its energy expenditure. In fact, PoW or proof of work refers to the consensus protocol used to validate transactions and mine cryptocurrencies. Precisely, Bitcoin is a network that has mostly chosen PoW.
Many sites today are about the ecological impact of bitcoin. On Investopedia, for example, we can read that Bitcoin mining generates about 36 kilotons of electronic waste. This same site claims that according to the Cambridge Index, Bitcoin uses about 85 terawatt hours (TWh) of electricity. This represents 0.38% of global electricity consumption.
Until now, there is no direct and accurate way to calculate the amount of energy used to mine Bitcoin or other cryptocurrency. Which means you can’t believe any particular statistics. According to the site “the ascent” in particular, most of the published figures are biased and inaccurate.
Bitcoin is less energy intensive than the classic payment ecosystem
Admittedly, Bitcoin is energy intensive. But it consumes less energy than the classic payment system. In any case, that’s what payment consulting firm Valuechain claims in its recent white paper. This is the result of a study based on the analysis of data collected over 4 years.
In an interview, the founder of the Valuechain firm Michel Khazzaka declares that the energy consumption of Bitcoin is lower compared to the energy consumption of traditional payments. This specialist supports his statements by saying that the banking system consumes 27 times more energy than Bitcoin.
Can Bitcoin be more environmentally friendly?
Yes, Bitcoin can become more environmentally friendly by turning to low-cost renewable energy. Even better, it would optimize the performance of the mining units. They will use less energy.
The arrival of the “Lightning Network” will also enhance Bitcoin’s instant transaction capabilities. This without increasing energy consumption.
It’s a fact: Bitcoin consumes energy. However, numbers should not always be relied upon. In fact, Bitcoin’s energy consumption is often compared to that of a house or a country. This expenditure cannot really be considered.
A recent study evaluates the energy expenditure of Bitcoin with the expenditure of the classical payment system. The result proves that Bitcoin does not pollute as much as the current payment system.
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My name is Ariela and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago. But it’s a universe I’m very interested in. And the topics covered in the platform give me the opportunity to learn more. A singer in my spare time, I also have a great passion for music and reading (and animals!