• Sat. Mar 2nd, 2024

Research Reveals Banking System Consumes More Electricity than Bitcoin

May 16, 2021

A research report surfaces which suggests that as compared to Bitcoin, the electricity consumed by the banking system is almost double. The researchers of the report collected the data of electricity consumption for Bitcoin and the banking systems and compared them with both.

In the past week, a report containing the research on the electricity consumption by the banking system and Bitcoin made highlights. The report was reportedly published by Galaxy Digital. The researchers and compilers of the report told that for the finalization of the report they had examined various aspects. For instance, the aspects of comparative study and quantitative approach with duly examined in the context of usage of electricity by both. In addition, the report also compared Bitcoin’s electricity consumption with Gold mining as well.

The examination and comparison revealed that overall 113.89 TWh per year amount of electricity is consumed by Bitcoin. This electricity consumption reflects the electricity consumed by Bitcoin’s mining, pool, miner demand as well as nodes. The report also detailed the exact amount of energy consumed by each of these factors. For example, it was detailed that nodes, pool, and miner demand consume electricity to the tune of 5,358,089, 8,609,328, and 15.87 in kWh per year respectively. However, the major chunk of energy source is consumed by Bitcoin mining which is reported to be 113,880,000,000 kWh every year.

In contrast with Bitcoin, the report suggested that the Gold industry has been utilizing 240.61 TWh energy sources every year. This figure is almost double the size of the electricity consumed by Bitcoin, suggested the research paper. However, shockingly the report suggested that the electricity consumption of the banking system is higher than the Gold industry and Bitcoin as well.

There are four major areas concerning the bank, which consume a high amount of electricity. These areas can be determined to be ATM machines, branches of the banks, card network systems, and data centers of the banks. The report then gave the final figure of electricity consumed by banks per year which was reported to be 263.72 TWh per year.

The electricity consumption by the banking sector is apparently higher than the Bitcoin and slightly more than that of the gold industry.

With regard to the electricity consumption by these three industries, the report suggested that electricity consumption is not something which is bad. The only problem is what resources are used to generate electricity, which in turn are causing environmental pollution. The report further suggested that mankind is in the habit of finding further technologies. These technologies too will be utilizing more energy sources. However, with the passage of time, the technology itself will enable mankind to find a solution to deal with the problem, said the report.

In the end, the report concluded with a question, whether energy source for Bitcoin is acceptable and the reply was in affirmative.

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