Over the fact bitcoin consumes much energy, Dutch bank ING is flustered. Recently, the bank releases a report saying Bitcoin transactions consume more electricity. However, they seem to believe that traditional electronic payment methods don’t use much energy.
How Much Energy Bitcoin Consumes
Teunis Brosens, ING senior economist explains why power consumes lot, “By ensuring that verifying transactions is a costly business, the integrity of the network will be preserves as long benevolent nodes control a majority of computing power”.
“This number needs some context. 200 kWh is enough to run over 200 washing cycles. In fact, it’s enough to run my entire home over four weeks, which consumes about 45 kWh per week costing €39 of electricity (at current Dutch consumer prices)”
Trusted Third Parties Equals Less Energy Consumption
The ING banker went on to mention that bitcoin’s energy usage model stands in “stark contrast” with legacy financial system energy consumption. Therefore, he said bitcoin consumes an “exponentially larger” amount of energy.
According to source,
“Bitcoin’s energy costs stand in stark contrast to payment systems that have the luxury of working with, trusted counterparties. E.g. Visa takes about 0.01kWh (10Wh) per transaction which is 20,000 times less energy”.
Fiat Money is Here to Stay
The ING banker determined by saying that fiat money is here to stay. Sustainably, people will get their salaries paid in fiat as well as paying tax too. Seemingly, banker imply that innovation was unnecessary and legacy financial systems were here to say. Therefore, it will be interesting to see what people think about the energy consumption of Bitcoin compared to legacy system electricity usage.