Bitcoin Less Energy Than Banking System – Report That Reverses the Trend

Energy saving – L ‘It’s still a new world of cryptocurrency Already plagued by many other cliches and cliches. An example is the energy management and consumption required for BTC mining. In the face of this injustice that sometimes condemns Bitcoin and its consumption too quickly, the report said Bitcoin: Energy Efficiency for Crypto Payments Comparing the consumption of traditional financing with the consumption of Bitcoin As well as the energy efficiency of the two payment methods. consequences.

Bitcoin, a cryptocurrency full of energy

a report Bitcoin: Energy Efficiency for Crypto Payments Posted by value chain Payment consulting firm. It took four years to achieve the results obtained in this study led by Michel Khazaca, a computer engineer, cryptologist and blockchain consultant.

To say that Bitcoin does not consume energy would be inaccurate and this is the first assumption made by this report. Listing Bitcoin’s energy flaws isn’t the purpose of the text either. However, Bitcoin is a victim of its detractors who wish to declare it persona non grata due to its energy-intensive consumption.

Evidenced by the identificationEurope with its own MiCa law Protocols are supposed to be banned proof of work (Proof of work)Very active according to the European Foundation. A concern for the cryptosphere, this law appears to have seen the death of Bitcoin several times, and it is resisting. The wrath of the Securities and Exchange Commission and some national and international regulators is also weighing on the king of cryptocurrencies.

As a reminder, the file Proof of work, POW It is a transaction block validation system. This protocol solves complex computer computations for the settlement of transactions, thus ensuring optimal security. In fact, this technology consumes, according to analyzes, between 88.85 TWh and 122 TWh per year (this last figure is the official result provided by the company Cambridge Bitcoin Electricity Consumption Index).

Bitcoin will consume 56 times less energy than banks.

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It is better if the banks save their energy

In this regard vis-à-vis the report, the report stresses that depending on the angle in which one positions oneself, conventional finance will also need to provide energy calculations. The researcher closely confirms that some criteria have been forgotten in calculating the pollution of the banking system. Therefore, it is necessary to take into account the importance of energy consumption mediatorsabsent on the side Bitcoin network :

  • money transfer
  • energy consumption of banking infrastructures (electricity, pollution of employees to travel to their workplaces, pollution of money convoys by Brinks, etc.);
  • the process of creating banknotes;
  • money management;
  • Bank and interbank payments.

Taking these parameters into account, the study arrives at a total 4981 TWh / general. In other words, Bitcoin spends only what it needs to exist. Bitcoin is self sufficient. In return, the bank spends the additional energy costs to perform the service you request from it. lightning networkPayment network one to one It allows the completion of an unintermediated batch from point A to point B. Backed by a whole host of calculations we wouldn’t be able to reproduce, the report comes to this conclusion:

“We demonstrate that Bitcoin consumes 56 times less energy than the classical system, and that even at the single transaction level, a Proof of Work transaction is 1-5 times more energy efficient.”

Banks vs Bitcoin: Which Payment System to Choose?

Bitcoin paired with the Lightning Network will then allow it to become the asset 194 million times more efficient From the traditional payment system and more economical what or what’instant payment (Instant transfer provided by banks) or SWIFT system. So conventional finance will have to limit its massive cash issuance. It can also increase the circulation of electronic money. Central banks are becoming heavy consumers of energy.

In the face of the evidence from these studies, Khafaq told our colleagues in the Coin Telegraph:

“Bitcoin Lightning and Bitcoin in general are really great and highly effective technology solutions that deserve widespread adoption.”

The ability of the Lightning Network was also mentioned, for its effectiveness in the face of mass adoption. The Bitcoin network can cash out 31 billion transactions per day compared to 31 million transactions for traditional payment networks. This discrepancy is due to the transnational systems. They are experiencing very few transactions per second (about 1000 per second for the SWIFT payment system).

In conclusion, Lightning at the single transaction level allows Bitcoin to achieve 194 million times more energy efficiency than traditional payment and up to 1 million more than instant payment, (…). »

Bitcoin Fall, Crypto Bear Market, Regulatory Fury, Deterioration of the macroeconomic context…a lot of threats are hovering over Bitcoin. A report like this was dismissed by major media outlets that had previously secretly loved him, which is welcome and even necessary in these bleak times. We will spare no action in praising the merits Created by Satoshi Nakamoto.

If at the end of this article you are still not convinced of the vital importance of taking the bitcoin and cryptocurrency bandwagon, let’s say goodbye to friends: nothing will work and no one will! Failing that, don’t wait any longer to prepare for the future By going to register on the Binance platformthe absolute standard in the sector (affiliate link).

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