There has been a lot of talk lately about bitcoin and its environmental impact. Some sites even suggest that the ecological impact of a single Bitcoin would be estimated at 168.9 tons of CO2. Bitcoin’s energy consumption is also often compared to global electricity production. What if we compare it to the traditional payment system? Does Bitcoin really pollute?
According to the founder of Valuechain, Bitcoin consumes energy. On the other hand, it is less energy-intensive than conventional payments.
Yes, Bitcoin pollutes and consumes energy! But…
More and more environmentalists are pointing the finger at bitcoin, or rather Proof of Work (PoW). The main reason: its energy consumption. Indeed, PoW or proof of work refers to the consensus protocol used to validate transactions and mine cryptocurrencies. Right, Bitcoin is a network that has largely opted for PoW.
Many sites nowadays talk about the ecological impact of bitcoin. For example, on Investopedia we can read that Bitcoin mining generates about 36 kilotons of electronic waste. The same site claims that Bitcoin uses approximately 85 terawatt hours (TWh) of electricity, according to the Cambridge Index. This corresponds to 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 any other cryptocurrency. Which means you can’t believe the statistics. According to the site “the ascent” in particular, most of the published numbers are biased and inaccurate.
Bitcoin is less energy-intensive than the classic payment ecosystem
Admittedly, Bitcoin is energy intensive. But it costs less energy than the classic payment system. At least that is what payment consultancy Valuechain claims in its recent whitepaper. This is the result of a study based on the analysis of data collected over a 4-year period.
In an interview, Valuechain firm founder Michel Khazzaka confirms that Bitcoin’s energy consumption is lower compared to the energy consumption of traditional payments. This specialist supports his statements by stating that the banking system consumes 27 times more energy than Bitcoin.
Can Bitcoin become more environmentally friendly?
Yes, Bitcoin can become more environmentally friendly by switching to cheap renewable energy. In fact, it would optimize the performance of the mining units. They will use less energy.
The advent of “Lightning Network” will also increase Bitcoin’s instant transaction capabilities. This without increasing energy consumption.
This is a fact: Bitcoin consumes energy. However, numbers should not always be relied upon. Bitcoin’s energy consumption is often compared to that of a household or a country. What makes it not really possible to estimate these expenses.
A recent study evaluates Bitcoin’s energy consumption with that of the classic payment system. The result proves that Bitcoin pollutes less than the current payment system.
Get an overview of news in the world of cryptocurrencies by subscribing to our new service fromdaily and weekly, so you don’t miss out on the essential Coinstand!
My name is Ariela and I am 31 years old. I have been working in the web writing field for 7 years now. I only discovered trading and cryptocurrency a few years ago. But it is a universe that interests me very much. And the topics covered within the platform allow me to learn more. Singer in my spare time, I also cultivate a great passion for music and reading (and animals!