Bitcoin uses 56 times less energy than classical system

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A recently published study compared Bitcoin’s and traditional finance’s energy requirements to find that Bitcoin currently uses 56 times less energy. Even with the current PoW system, one Bitcoin transaction is five times more energy-efficient than a classical transaction.

Results of the study

On the other hand, Bitcoin Lightning is 194 million and 1 million times more energy-efficient than traditional and instant payments, respectively.

The study defines money with three utilities as being a unit of account, a medium of exchange, and a store of value. In this respect, both Bitcoin and fiat currencies become comparable.

Energy consumption

The authors first calculate the energy consumption of fiat currencies and Bitcoin.

Fiat money

When calculating the energy consumption of banknotes and coins, the authors take the energy needed for printing paper money, renewing coins, running ATM systems, transmitting cash, using electronic payments systems (EPOS), issuing card payments, running banking offices, employing banking staff and managing inter-banking into consideration.

As a result of a detailed calculation of…

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