A report by Galaxy Digital ‘on Bitcoin’s energy consumption’ has revealed that traditional banking systems use more energy than Bitcoin.
The cryptocurrency market tanked last week after Tesla said it was no longer going to accept bitcoin in exchange for its cars, citing high energy usage as its reason.
The report estimates that the traditional banking system uses 263.72 TWh of energy each year while bitcoin consumes about 113.89 TWh/yr in total. Total global energy supply is more than 166,071 TWh/yr.
The report also estimated that the gold industry utilizes roughly 240.61 TWh/yr.
It said as a new form of technology, Bitcoin was not directly going to replace any legal tender.
The report added that Bitcoin consumed a substantial amount of energy as the energy consumption made it robust and secure.
“Bitcoin’s direct energy consumption came from three sources: the nodes that validate and relay transactions, the pools that coordinate miners’ activity across the world, and the mining machines,” it said.
Most of bitcoin’s energy consumption comes from operating mining machines, roughly 99.8 per cent, it added.
Although the cryptocurrency market continues to tank, it is expected to rebound soon.
Tesla CEO, Elon Musk, in a tweet said: “To clarify speculation, Tesla has not sold any Bitcoin.”
On Monday, Bitcoin was $42,413.52. It had a 24-hour trading volume of $82,519,008,685 and was down 9.75 per cent.