Digital Asset Management Company Calculates How Much Electricity Is Used To Maintain The Main Cryptocurrency Network And Banking Sector
Galaxy Digital, one of the largest crypto asset management companies, published the results of its own research , from which it follows that the bitcoin network consumes half the energy of the banking sector.
According to the company’s estimates, the cost of electricity for maintaining the network of the main cryptocurrency is 113.89 TW / h, and about 263.72 TW / h is needed to ensure the operation of the banking sector. The electricity consumption for gold mining at Galaxy Digital was estimated at 240.61 TW\h.
The team at Galaxy Digital Mining wrote an excellent white paper examining #bitcoin’s energy usage.
Did you know that 19x more energy is lost in transmission than Bitcoin miners consume? Great research here—and we open sourced our methodology.https://t.co/bTR40GdiSP pic.twitter.com/wjd92RmC1l
— Galaxy Digital Research (@glxyresearch) May 14, 2021
Galaxy Digital analysts noted that Bitcoin’s electricity consumption is tracked transparently in real time, which is not the case for the banking sector.
The company’s report says that banks do not provide open data on energy consumption, so multiple levels of calculations were used for these indicators.
Last week, Tesla suspended the sale of its electric vehicles for bitcoins due to the unsustainable way of mining them. The head of the automaker Elon Musk said on Twitter that Tesla cannot afford to harm the environment, so it will not accept cryptocurrency as payment until it starts mining with renewable energy sources.
Musk later questioned the decentralization of Bitcoin and recalled the recent situation with power outages in China, which reduced the hash rate of the main cryptocurrency network by 35%.
