Against the backdrop of Tesla’s decision that it was no longer going to accept bitcoin in exchange for its cars, citing high energy usage as its reason, a report by Galaxy on ‘Bitcoin’s Energy Consumption’ has revealed that traditional banks use more energy that Bitcoin.
The Galaxy report estimates that the 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 greater 166,071 TWh/yr.
The report also estimated that the gold industry utilizes roughly 240.61 TWh/yr.
According to Galaxy, a new form of technology, Bitcoin was not directly going to replace any legal tender. It added that Bitcoin consumed a substantial amount of energy as the energy consumption made it robust and secure.
The report stated that 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 added that most of bitcoin’s energy consumption comes from operating mining machines, roughly 99.8 per cent. Although the crypto market continues to tank, it is expected to rebound soon.
CEO, Tesla, Elon Musk said in a tweet “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. Bitcoin was down 9.75 per cent.