In recent years, there has been much debate about the environmental impact of Bitcoin mining. Critics often point to the energy-intensive proof-of-work (PoW) mechanism used by the Bitcoin blockchain as a major concern. However, a peer-reviewed white paper published by payment consultancy firm Valuechain challenges some of the prevailing assumptions about Bitcoin’s energy consumption1.

Here are the key findings from the study:

Bitcoin’s Energy Efficiency: Contrary to popular belief, the Valuechain publication shows that Bitcoin is significantly more energy-efficient than the current banking system. In fact, Bitcoin is estimated to be 56 times more energy efficient than traditional banks. This finding is based on a comprehensive analysis that considers various factors, including data centers, bank branches, ATMs, and credit card networks within the banking sector1. Incomplete and Biased Research: The study criticizes past energy analyses of Bitcoin, including the widely cited University of Cambridge research. According to Valuechain, these previous studies were incomplete, inaccurate, and unfairly biased against crypto. By conducting four years’ worth of research and data compilation, Valuechain aims to provide a more balanced perspective on Bitcoin’s energy usage1. Actual Energy Consumption: Payless Power’s calculations indicate that the Bitcoin network consumes approximately 167 terawatt-hours (TWh) of energy per year, while the global banking system consumes more than 258 TWh. In other words, Bitcoin’s energy consumption is about 35% less than that of traditional banks2. Gold Mining Comparison: The Galaxy Digital study goes even further, claiming that Bitcoin’s energy consumption is less than half that of the traditional banking system and even lower than gold mining’s energy usage3. Environmental Impact: While concerns about Bitcoin’s carbon footprint persist, it’s essential to recognize that the narrative around its energy consumption may not be entirely accurate. As the crypto industry evolves, ongoing research and data-driven analyses will help provide a clearer picture of Bitcoin’s environmental impact1. In summary, the battle between Bitcoin and banks isn’t just about financial systems; it’s also about energy efficiency. While Bitcoin mining does require energy, it appears to be more sustainable than many critics suggest. As the world transitions toward cleaner energy sources, the debate over Bitcoin’s environmental impact will likely continue. But for now, the evidence suggests that Bitcoin’s energy consumption is not as dire as some portray it to be1. 🌱🔌💡