The Galaxy Digital Mining team has written a whitepaper examining the rate of Bitcoins energy usage. The announcement was made on Twitter by its research handle, @glxyresearch on May 14 telling followers of the whitepaper by its mining team.
The team at Galaxy Digital Mining wrote an excellent white paper examining #bitcoin’s energy usage.
— Galaxy Digital Research (@glxyresearch) May 14, 2021
Galaxy Digital (GLXY) a digital asset management bank had begun its venture in BTC mining in January. The company announced on March 5th that its novel bitcoin mining business will be hosted on blockchain facilities for an initial deployment of machines in the US and Canada.
The whitepaper which offered a “quantitative” approach to the energy consumption question explains that the energy usage of the digital gold originates from three sources which are, the nodes, the pools and the mining machines.
The analysis mentioned that the increased energy consumption via Bitcoin mining is what makes it robust and secure. The whitepaper further estimates the energy consumption rate of the crypto king in a year to be 113.89 TWh in total.
Does Bitcoin Consume the Most Energy?
The release of the whitepaper has churned hundreds of reactions as Bitcoiners query if gold and other digital assets don’t consume as much or more than the crypto coin’s current energy usage.
A Twitter user with the username @ciraxx tweeted in response – “Gold is 11x larger than Bitcoin and banking system is 18x larger (in 2018) probably larger now… sooo if Bitcoin is scaled up to that size what would the power consumption be? So Bitcoin 11-18 times smaller but uses half the power the other two use.”
The energy usage of BTC has generated more interest in recent times after car manufacturing company, Tesla, suspended the use of the leading crypto asset as a payment method, citing its negative environmental impact and energy consumption.