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Bitcoin mining uses 56 times less electricity than the banking industry

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A new study claims that bitcoin is more energy efficient when compared to a classic electronic payment system. The author of the article argues that critics do not compare the energy consumption of bitcoin mining with the energy consumption of the existing banking industry.

“We have shown that Bitcoin consumes 56 times less energy than a classical (banking – ed.) system, and that even at the level of a single transaction, a cryptocurrency transaction is 1-5 times more energy efficient,” the authors of the work say.

According to the report, the classic payment system has a total energy consumption of 4,981 TWh/year, it supports 3.14 trillion transactions per year and uses 1.58 kWh per transaction. Given the Lightning system, mining and using bitcoin is much more profitable and efficient.

So, with Lightning, the total energy consumption per year is 88.95 TWh, 31.54 trillion transactions can be carried out per year, and each transaction consumes only 0.00282 kWh. This means that the system can process many more transactions than the current banking system and consume much less energy, the authors of the work say.

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