Bitcoin’s Energy Consumption is Greener As Compared to Today’s Financial System

While the variety of digital currencies and Bitcoin have swelled in terms of value, various critics have spread uncertainty and fear when it comes to the energy consumption proof of work that cryptocurrency is used to produce units of currency. Lately, a software professional revealed his dissatisfaction with the environmental price of Bitcoin. 

With that being stated, crypto supporters believe that the professional field to state the quantity of renewable energy utilized by a large number of mining facilities, apart from the insurmountable prize to work out the banking system of today. 

Bitcoin’s Proof-Of-Work Energy Consumption

The proof of work energy consumption of Bitcoin is among the latest hot topics in the industry of cryptocurrency no matter if the energy consumption is efficient or not. This conversation was started by numerous articles published in 2020, apart from the software professional’s recent critic concerning the power consumption of the network. 

Also Read: Bitcoin’s Price Could Rise $45K Due To Institutional Investment. What Happens When They Sell?

Criticism Related to Waste of Energy

Apart from the fact that the software professional, as we mentioned earlier, considers the cryptocurrency asset as a giant Chernobyl, he also stated that Bitcoin economics happens to be a pyramid-shaped scheme of investment that is supported by collective delusions that can be developed out of nothing by molding fools to purchase it. This criticism spread out like wildfire in the industry of cryptocurrency. 

As far as the criticism is concerned, the software professional’s perception towards the energy consumption of Bitcoin is loaded with apparent fallacies, and he further does not realize how the crypto network happens to be more energy-efficient than people think. Many people fail to understand the cost of maintaining the banking system of today, which involves a huge number of terawatts dedicated to automatic teller machines, branches, and servers. 

Bitcoin’s Energy Consumption is Not Wasteful

As far as Bitcoins energy consumption is concerned, it happens to be much more efficient than the financial systems existing today. The maximum of the data, that stems from the Bitcoin network, happens to be derived from the Cambridge Bitcoin electricity consumption index. Various mainstream analysts and media are also aware of this energy consumption index as well. 

Also Read: All You Need to Know about the Crypto World's Journey to Traditional Investment

75% of Crypto Miners Leverage Renewable Energy

Anti Bitcoin environmentalists generally do not consider the fact that the maximum of the proof of work that the mining industry utilizes are from renewable energy sources like solar, geothermal, wind and hydropower. According to reports, more than 70% of cryptocurrency miners utilize a mix of renewable energy for powering facilities worldwide. Apart from that, abundant efforts are dedicated to energy cogeneration side by side. Approximately, 76 % of digital currency miners utilize renewable power sources. It can also be stated that 78% of bitcoin’s power usage is directly from renewable sources. 

Countless real-world examples and reminders exist regarding bitcoin miners leveraging a far more productive means of power utilization than each of the financial systems worldwide. Before two years ago, a board director and an investor highlighted how the creator of Bitcoin is smiling only because of the renewable energy that Bitcoin miners use today. It is apparent that Bitcoin mining and additional proof of work-based cryptos are bringing positive change within the underlying energy production and infrastructure, that too at an accelerating momentum. 

The maximum of the productive sources of electrical energy does not happen to be fossil fuel-based when it comes to scaling, however, as far as the marginal costs of water, solar and wind-based energy are concerned they are working efficiently. Therefore, it can be stated that the energy consumption of Bitcoin is not as bad as people think. Rather, people should stop complaining regarding Bitcoin and begin complaining about decorative lights instead.