Crypto News

Banks Consume 133% More Power than Bitcoin: Clean Energy Scholar

There are a lot of loopholes in the conversation around bitcoin and its annual energy consumption rate, says a clean energy specialist.

Professor Katrina Kelly-Pitou of the University of Pittsburgh wrote that researchers overestimate their findings of the cryptocurrency’s higher power consumption rates. Stating that banks annually consume more energy than bitcoin, its so-called alternative, one should not worry much about the cryptocurrency’s energy-intensive features. Excerpts:

“Bitcoin mining uses an excessive amount of power: somewhere between an estimated 30 terawatts hours in 2017 alone […] Indeed, this is a lot, but not excessive. Banking consumes an estimated 100 terawatts of power annually. If bitcoin technology were to mature by more than 100 times its current market size, it would still equal only 2 percent of all energy consumption.”

Wrong Discussion

In retrospective, minting new bitcoin tokens requires the solving of a programmable puzzle using energy-intensive computer hardware. Miners that can provide more power have a better probability of solving the code. All they need is a state-of-the-art computer and access to unlimited electricity.

Bitcoin’s underlying algorithm receives criticism for promoting power wastage and increasing the earth’s carbon footprint. A Forbes article published in May last year stated that the cryptocurrency increased the global energy consumption rate by 2 percent.

bitcoin, bitcoin mining

Bitcoin Energy Consumption Index | Source: BitcoinEnergyConsumption.com

Professor Kelly-Pitou believes that conversation around bitcoin mining is heading in the wrong direction. Instead of discussing how much the cryptocurrency consumes every year, researchers should talk about meeting bitcoin’s requirements using renewable methods. The researcher compared fossil-based mining farms in China with a 100% renewable energy-based fields in Ireland, stating that the source of electricity played an essential role in determining whether bitcoin mining is good or bad.

“Rather than discussing the energy consumption of bitcoin generally, people should be discussing the carbon production of bitcoin, and understanding whether certain mining towns are adding to an already large environmental burden,” – she wrote.

Bitcoin Miners are Clean Energy Lovers

A miner is also a businessman whose profit margin increases if his input costs go down. Professor Kelly-Pitou stated that many of these businessmen are already shifting their bases to areas that offer clean, cheaper energy. It is up to the government and energy companies to innovate their energy supplies using green solutions. The miners, in the end, would pick a town that has it.

“Increasing energy consumption is bad only if we aren’t shifting toward less carbon-dense power production,”  she added. “So perhaps people should quit criticizing bitcoin for its energy intensity and start criticizing states and nations for still providing new industries with dirty power supplies instead.”

The Cambridge Bitcoin Electricity Consumption Index reflects the cryptocurrency consuming 6.98 gigawatts at this time of writing.

The post Banks Consume 133% More Power than Bitcoin: Clean Energy Scholar appeared first on NewsBTC.

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

Related Crypto News

Bitcoin’s Strong Monthly Close Indicates October Will be a Green Month
Bitcoin’s recent bout of consolidation is still ongoing, but bulls appear to be in the process of attempting to...
Penn State set to host its own node for an enterprise blockchain
Penn State snagged one of GoChain’s node operator spots. Penn State, a U.S. university touting more than 40,000 students,...
ICO Aftermath: US Rules in Favour of SEC in $100M KIK Case – SALT to Reimburse Claimants From 2017 ICO
A US court has ruled in favour of the US SEC after the regulator’s filing of a motion seeking...
Bittrex Global gets cleared to run crypto exchange from Bermuda
Bermuda continues to welcome fresh wave of crypto exchanges on the island. Crypto exchange Bittrex Global received the green...
Chainlink Following In 2017 Ethereum Footsteps Could Fuel Rise To $75
Chainlink’s recent price action closely resembles a sharp pullback in Ethereum in 2017 during the crypto market bull run....
Balancer (BAL) and Ren (REN) are launching on Coinbase Pro
Today October 1, transfer BAL and REN into your Coinbase Pro account ahead of trading. Support for BAL and...

Featured Crypto News

A Lifelong US Dollar Downtrend Paints Bullish Outlook for Bitcoin
The US dollar is on track for its most significant monthly performance since July 2019. But it continues to...
Chainlink up 30% following six-week downtrend and developer selloff
A Chainlink developer address appears to have been offloading tokens and putting downward pressure on prices. But things are...
The Pivotal Bitcoin Level Analysts Are Watching as End of September Nears
It’s been quite a boring month for Bitcoin. After plunging around $2,000 at the start of the month, the...
Uniswap’s UNI Token Could Rocket Past $6.00 as Bulls Defend Crucial Support
UNI – the governance token of the Uniswap platform – has been seeing some immense turbulence in the time...
100M people worldwide now use crypto-based assets, says Cambridge study
Skyrocketing figures show crypto’s growing global dominance.Skyrocketing figures show crypto’s growing global dominance Researchers at the Cambridge Centre for...
Why Top Global Brands Like the NBA and UFC Choose Dapper Labs’ Flow Blockchain
Developed by the team behind some of the most successful crypto applications in the world, Flow is a blockchain...