There’s been a lot of talk lately about bitcoin and its environmental consequences. Some sites even suggest that the ecological impact of a single Bitcoin would be estimated at 168.9 tonnes of CO2. Bitcoin’s energy expenditure is also often compared with global electricity production. What if we compared 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 more precisely at Proof of Work (PoW). The main reason: his energy expenditure. Indeed, PoW or proof of work refers to the consensus protocol used to validate transactions and mine cryptocurrencies. Precisely, Bitcoin is a network that has largely opted for PoW.
Many sites today relate the ecological impact of bitcoin. On Investopedia for example, it can be read that Bitcoin mining generates around 36 kilotons of electronic waste. This same site claims that according to the Cambridge Index, Bitcoin uses around 85 terawatt hours (TWh) of electricity. This is the equivalent of 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 another cryptocurrency. Which means you can’t believe any given statistics. According the website “the ascent” notably, most published figures are biased and inaccurate.
Bitcoin is less energy intensive than the classic payment ecosystem
Admittedly, Bitcoin is energy-intensive. But it spends less energy than the classic payment system. In any case, that’s what the payment consulting firm Valuechain claims in its recent white paper. This is the result of a study based on the analysis of data collected over 4 years.
In an interview, the founder of the firm Valuechain Michel Khazzaka affirms that the energy expenditure of Bitcoin is lower compared to the energy consumption of traditional payments. This specialist supports his statements by saying 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 turning to low-cost renewable energy. Even better, it would optimize the performance of the mining units. They will use less energy.
The arrival of “Lightning Network” will also boost the instant transaction capabilities of Bitcoin. This without increasing energy consumption.
This is a fact: Bitcoin consumes energy. However, numbers should not always be relied upon. Indeed, the energy consumption of Bitcoin is often compared to that of a household or a country. What does not really make it possible to estimate this expenditure.
A recent study evaluates the energy expenditure of Bitcoin with that of the classic payment system. The result proves that Bitcoin does not pollute as much as the current payment system.
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