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Banking Is 56 Times More Energy Consuming than Bitcoin, Research Reveals

Cryptocurrency Jun 17, 2022 11:30PM ET
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Banking Is 56 Times More Energy Consuming than Bitcoin, Research Reveals

Recent research by Valuechain examined and compared the energy consumption of the traditional banking system with Bitcoin’s Proof of Work and Bitcoin Lightning mechanisms. Bitcoin blockchain technology often gets slammed in the media as consuming too much energy. However, the recent study reveals otherwise.

The research was conducted by Michael Khazzaka, who is an IT engineer and cryptographer. His research was published on April 20, and the discoveries are pretty shocking, for instance that “Bitcoin payments are a million times more efficient than traditional banking.”

Unexpected Figures in Efficiency & Scalability

As the abstract of the research paper says, the results of the study are based on physics and information science as well as economics. “We compute and compare the energy consumption and define what is the energy efficiency of both the current monetary system and Bitcoin crypto payment system.”

Apparently, a single Bitcoin (BTC) transaction on the PoW (Proof-of-Work) based blockchain is consuming up to five times less energy than an instant payment in the current monetary system. In addition, if the results of PoW and Bitcoin Lightning system were combined, it would mean the blockchain transfers are 56 times more efficient than Instant Payments. The researchers also note that if we’d compare Bitcoin Lightning system transactions to traditional banking payments alone, Bitcoin Lightning would outrun the traditional Instant Payments system by a million times.

Crypto Community Is in Search of Objectivity

The environmentally challenging crypto mining and PoW transactions have been widely discussed on social media; therefore big players in the crypto game such as Ethereum (ETH) decided to fully switch to the Proof of Stake (PoS) mechanism, which is 99% less energy-consuming.

Previously, Cambridge’s Bitcoin Electricity Consumption Index indicated that Bitcoin consumes about 122 TWh. Khazzaka argues that’s not the case, as his graph shows an estimate of 88.95 TWh and points out that “Bitcoin is a great and very efficient technological solution that deserves to be adopted on a large scale. This invention is brilliant enough, efficient enough, and powerful enough to get mass adoption.” The question is, will the global leaders be courageous enough to adopt the technology?

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Banking Is 56 Times More Energy Consuming than Bitcoin, Research Reveals
 

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Comments (3)
jason xx
jason xx Jun 18, 2022 9:09AM ET
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If this was published in April why is it only coming out now?
Mik Ka
Mik Ka Jun 18, 2022 3:10AM ET
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what a p of bs, im sorry for my french. crypto consumes hundred times more by design
jason xx
jason xx Jun 18, 2022 3:10AM ET
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Actually your comment is B S. based on nothing. His comments are published research... Next!
Todd Gray
Todd Gray Jun 18, 2022 12:26AM ET
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Power will one day come from neutrinos. Abundant, free, and they're everywhere in the entire universe. You'll receive it 20,000 ft below the Earths crust. No wires needed. No charging required. But, by the time it comes to fruition planned obsolescence in all products will provide a life span of 2 weeks or 97 cycles; whichever comes first (it's all they'll have left to rump us with). Well, that and neutrino shortages. They'll be caused by the 2481, in aggregate, square feet of space junk dangerously refracting the tiny nutrinos path to earth, threatening mankind and causing worldwide nutrino-covids - which will be accelerated by all the liberal farts caused by too much soy intake causing neutrinos to speed up past the speed of light a projected .00000006720% that could damage the whole world's nutrino infrastructure. Better prepare now, and buy my TodCo Neutrino Shortage Survival Kit with the TodCo Low Nutrino Consumption Smelly Air Refresh Kit upgrade.
jason xx
jason xx Jun 18, 2022 12:26AM ET
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Right now tell us how traitor trump is not an election LOSER and is really tough on putin?
 
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