A tweet from Melis Wallet debunks the myth of Bitcoin's excessive power consumption.
While bitcoin mining certainly consumes a lot of electricity, it is worth comparing it to something similar to wonder if it is excessive or not.
– Melis (@MelisWallet) March 10, 2021
The tweet includes a chart, prepared by ARK Investment Management, that compares the current energy consumption of bitcoin mining with that of gold mining or traditional banking.
The graph actually references a 2018 post from Kraken's Head of Business Development Dan Held, but that data doesn't differ much from current data and is part of a larger study released yesterday by ARK Invest.
According to these figures, the Bitcoin mining consumes less than half the energy consumed, for example, by gold mining in a year.
By the way, not only is electricity consumed, but in the case of gold, a significant part of the energy consumed comes from the fuels used in classic heat engines.
However, the most striking comparison is with the traditional banking system, what consumes ten times more energy than Bitcoin mining.
Therefore, although the energy consumption of Bitcoin mining is and remains high, in light of these comparisons it cannot be described as “excessive”.
High power consumption protects Bitcoin
It is also worth noting that this high power consumption indirectly gives the Bitcoin blockchain considerable resistance to attack, since it generates high costs for those who would try to attack it.
For example, it is estimated that for a single hour of a 51% attack on the Bitcoin network, one would have to spend even more than $ 700,000, so it is absolutely inconvenient to risk attacking it.
So while Bitcoin mining is highly energy consuming, it also gives your blockchain enormous resistance to attacks and is still much less expensive than what is needed to run alternative systems.