Galaxy Digital has recently released a report containing the results of the comparative analysis they made between the energy consumption of Bitcoin and that of the gold and banking industries.
According to the report, every year Bitcoin consumes 113.89 terawatt-hours while the gold industry consumes 240.61 terawatts per year and the banking industry has higher consumption, recorded at 263.72 terawatts annually.
The energy consumption of Bitcoin was compared by Galaxy Digital to that of the yellow metal and the banking industry since the largest cryptocurrency is frequently being compared to the two.
Putting Bitcoin’s energy requirement into perspective, the report stated there is no denying that the Bitcoin network consumes a substantial amount of energy “but this energy consumption is what makes it so robust and secure.”
Not a problem?
Galaxy Digital’s report also revealed how vital energy is for the Bitcoin network and how it can actually help in reducing pollution in the atmosphere.
Most of the time, critics believe the energy used by crypto miners is either “stolen from more productive use cases, or results in increased energy consumption.” But because of energy market inefficiencies, Bitcoin miners are incentivized to leverage energy that may “otherwise be wasted or underutilized” because it has the lowest cost.
The report also showed about 2,205 terawatt-hours (19.4 times of Bitcoin’s) of the world’s energy production is wasted every year.
Bitcoin slammed for energy requirement
Over the past days, Bitcoin has suffered significant price drops because of criticisms of the insane power required for its mining process. At press time, its price stands at around $44.8K and has been down almost 20% for the past week.
The price drop was triggered by Tesla’s Elon Musk’s announcement that the company will stop accepting Bitcoin as payment as they are concerned about its negative impact on the environment brought about by its energy-hungry mining machines.
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