Every day we hear environmental protection campaigns, where energy consumption is a fundamental part, because we are making incorrect use of energy exposing a large amount of natural resources that are involved in the energy generation process such as oil, gas, coal, water, among many more.
Many kilowatts per hour are consumed daily globally, as Tanya Steele, CEO of WWF UK, said: “WE ARE THE FIRST GENERATION TO KNOW THAT WE ARE DESTROYING OUR PLANET AND THE LAST THAT CAN DO ANYTHING ABOUT IT”, but it is not only the environmental aspect that influences when talking about who consumes more energy if a banking system that has been using energy for years or BITCOIN that with only almost 13 years bases its mining operations on consumption of electricity.
The traditional Banking System has a huge number of bank data centers, bank branches, ATMs, and data centers of card networks that are in turn interrelated, for which electric power represents the fundamental interconnection base as to the human body is blood. The unexpected interruption of the electrical flow represents a blow to the financial structure, generating instability in the execution of the tasks in each of the data centers.
THE GOLD INDUSTRY CONSUMES A HIGH AMOUNT OF ENERGY, which implies the loss of natural resources involved in generating electricity. According to research carried out by the mining branch Galaxy, it reports that the banking system consumes almost twice energy as Bitcoin.
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Assuming a high energy cost for BITCOIN represents the guarantee of maintaining the integrity of the mining network, where those who want to commit fraud must assume a gigantic energy cost in order to try to violate the BITCOIN platform, this being the crypto with the highest energy cost.
It is impossible to know what the actual energy consumption of BTC mining is as there is no central register that indicates which machines are active “mining” and what consumption each one has.
According to estimates made in previous electrical engineering studies, they have come to the conclusion that the energy consumed by annual bitcoin transactions is COMPARABLE TO THE ANNUAL CONSUMPTION OF THE COUNTRY OF ECUADOR.
A demonstration of profitability in energy consumption was the great Chinese mining migration in search of electrical energy, transactions, and creation of new currencies result in an intense consumption of electricity, this is due to the fact that each time movement operations of the cryptocurrency this is kept in a public registry, instead of in a bank, which leads to the great connectivity of computer equipment that through the cryptocurrency network, solves complex mathematical problems, most of which requires the operation of said teams almost 24 HOURS A DAY TO OBTAIN THE POWER of calculation necessary to find the solution of said algorithms.
Without a doubt, the answer to our energy consumption question is nothing more and nothing less than the banking system consuming practically twice the energy of bitcoin, even though the latter is the digital currency that consumes the most energy. This is due to the large number of servers in the world that allow users to use their banking platforms as well as the payment instruments that are granted by said entities and that the mere fact of making use of them generates electricity consumption without taking into account the energy saving and much less the protection of the environment.
On the other hand, we can understand why many active crypto miners are located in countries where they consider that the cost of electricity service is considerably low, although it also lends itself to those thugs who only seek to try to scam and that several cases have already been seen where unfortunately they have been penalized with jail.
Although bitcoin’s environmental damage is so far only a small fraction of that produced by cars and industry, these ecological concerns have pushed many miners to abandon coal power and move to places with cheaper hydroelectric power. And despite most concerns, the cryptocurrency continues to have a large fan base, most notably Tesla’s Elon Musk.