A new study proves that bitcoin is more sustainable than traditional banking

Bitcoin is more sustainable than traditional banks

According to new studies the energy consumption of the bitcoin network is 50 times lower than with conventional banks. The consensus algorithm used by the bitcoin blockchain, based on the PoW model, has always been criticized for its excessive power consumption.

According to data analyzed by the University of Cambridge, the annual energy consumption of the bitcoin network is around 121 terawatt hours (TWh). If Bitcoin were a country, then it would consume more than the Netherlands, Pakistan or Denmark. In other words, these countries require less energy than the entire BTC network.

It is also worth adding that environmental pollution is largely due to the type of resources used to produce the required energy.

The study continued by calculating the average life of the mining equipment; a sharp increase in the use of water, wind and solar energy by BTC miners; and the adoption of energy-intensive mining technologies and determined that the network consumes 88.95 TWh per year, much less than calculated by the University of Cambridge.

Bitcoin consumes 56 times less energy than a conventional system, and that even at the level of a single transaction, a PoW transaction proves to be 1 to 5 times more energy efficient.

Banks on a bitcoin blockchain

The cryptocurrency lawyer, Lars Schlichting, se involved into the discussion of this new study and used this analysis to emphasize his apparent bitcoin maximalism. The introduction leaves room for argument:

"I'm worried about our planet, so I support #Bitcoin."

Lars suggests that central banks could use the bitcoin blockchain to issue CBDCs while shutting down all servers used by the banks themselves. His "proposal" may seem pointless, especially to supporters of greener, more sustainable blockchains.

In addition, shutting down all servers would mean the end of products and services offered electronically for the bank, which are now the core of their operation.

Therefore, if the bank wanted to continue its traditional business, it would have to transfer these tools to a blockchain. More precisely, by using the architecture of smart contracts, we end up under the definition of DeFi, which by its nature has no central entity. This would end the concept of banking as it is understood today.

Charles Hoskinson, co-founder of blockchain Cardano, commented on the study:

"Bitcoin's energy consumption has more than quadrupled since the beginning of its last peak in 2017 and will continue to deteriorate as energy inefficiency is built into Bitcoin's DNA.

Bitcoin's carbon footprint will deteriorate exponentially, as the more its price rises, the greater the competition from miners and the more energy it consumes.

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