Bitcoin's Energy Footprint | Comparing Bitcoin Mining with Banking and Gold
The ongoing debate about Bitcoin's energy consumption continues to spark contrasting views. Critics assert Bitcoin's mining process is much more energy-intensive than banking or gold mining. As insights unfold, it's clear many people are questioning the accuracy of prevailing estimates.
Bitcoin's Energy Consumption Erased in Contrast
Latest figures suggest Bitcoin's energy usage reached approximately 170 terawatt-hours (TWh) in 2025. Some commentators challenge previous claims, arguing banking operations use less energy overall. For instance, one user stated that global banking only consumes about 260 TWh per year, far less than the energy Bitcoin requires.
"Bitcoin uses more energy per transaction than banking by a long shot," one user emphasized, drawing stark comparisons.
This prompts an important question: is Bitcoin's energy-efficient practice overrated? At 7 transactions per second, Bitcoin’s energy consumption stands at about 770 kWh per transaction, while Visa transactions average just over 1 kWh, showcasing a significant disparity.
Efficiency Concerns: Beyond Bitcoin
Critics continue to express disbelief in Bitcoin's efficiency. Notably, one commentator stated, "The system that handles all financial transactions only has a 7 times larger energy footprint? That’s not a good show for Bitcoin here." Comparing transaction rates between Bitcoin and established payment systems like Visa alters the perception of efficiency.
Interestingly, many people acknowledge that all sectors are moving towards using more renewable energy.
Shifting to Green Energy
By 2025, reports suggest that Bitcoin mining's power usage is now powered by over 50% renewable energy, a notable improvement in sustainability. This rival's advancements made in traditional banking and gold mining energy sources.
As more industry sectors like banking and gold strive for eco-friendliness, the race for green credentials intensifies. Those engaged in crypto mining might find themselves under pressure to boost their renewable energy ratios to stay competitive.
New Takeaways from Recent Insights
🟡 Bitcoin's energy consumption is pegged at 170 TWh for 2025.
📉 Compared to banking, Bitcoin's energy consumption per transaction is significantly higher.
🌿 More than 50% of Bitcoin mining's power comes from renewable sources, indicating positive progress.
As the bitcoin community stands at a crossroads, stakeholders will need to reckon with energy practices as a key concern. Can Bitcoin refine its narrative on energy consumption while maintaining its growth?