Galaxy Digital shared a report on Bitcoin’s energy consumption. Galaxy Digital believes the energy consumption seen on the Bitcoin network is acceptable.
Galaxy Digital, whose CEO is billionaire Mike Novogratz, states in its report that it is predictable how much energy it consumes thanks to the transparent nature of Bitcoin. To compare Bitcoin in this regard, it applies to the gold and banking industry.
What about their energy consumption?
According to the report, Bitcoin working with the Proof-of-work (PoW) mechanism consumes an estimated 113.89 TWh of energy per year. For a clear understanding of the values, the company states that the global annual energy supply is approximately 166,071 TWh per year and the global electricity generation is approximately 26,730 TWh per year.
As the banking system does not report fully on electricity consumption, Galaxy Digital; He says that it makes calculations based on the electricity consumption in banking data centers, bank branches, ATMs and data centers where cards are connected.
When calculated with these four basic factors, an estimated 238.92 TWh of energy consumption per year is obtained for the banking sector.
The company, which also calculates for the gold industry, applies to the greenhouse gas emission data of the World Gold Council (WGC). In the light of these data, the average annual value reached by the company for gold energy consumption is 240.61 TWh.
Galaxy Digital states that it is not possible to deny that the Bitcoin network consumes a significant amount of energy, but that this energy consumption makes the Bitcoin network strong and secure.