Bitcoin Mining Uses Less Energy Than Traditional Banks, Study Finds
A recent study conducted by Payless Power, a retail energy provider in Texas, reveals that global Bitcoin mining consumes significantly less energy compared to the traditional banking system. The findings come at a time when the environmental impact of cryptocurrencies, particularly Bitcoin, is a topic of intense debate and scrutiny, according to Cryptonomist.
According to the research, the Bitcoin network consumes approximately 167 terawatt-hours (TWh) of energy annually. In contrast, the global banking system uses over 258 TWh, making Bitcoin’s energy consumption about 35% less than that of traditional banks. This comparison takes into account the energy used by bank data centers, physical branches, ATMs, and card networks such as VISA.
The study’s calculations were based on various data sets, including the Bitcoin Energy Consumption Index and the total value of assets held by the top 100 banks globally. The majority of the banking sector’s energy consumption is attributed to data centers, which require significant energy for servers, computers, and cooling systems—similar to the infrastructure used in Bitcoin mining.
Payless Power’s CEO, Brandon Young, commented on the findings, highlighting a common misconception about Bitcoin’s energy usage. He pointed out that, contrary to popular belief, Bitcoin could be more energy-efficient on a global scale. Young suggested that adopting Bitcoin might lead to a more environmentally conscious financial sector, integrating digital currencies with renewable energy sources to foster a sustainable economy.
These insights challenge the prevailing narrative around Bitcoin’s environmental impact, suggesting that the cryptocurrency might offer a viable alternative to traditional financial systems, which are also energy-intensive but less often scrutinized to the same extent. This study could potentially shift public and regulatory perspectives on the sustainability of Bitcoin as compared to conventional banking practices.
