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November 19, 2019

Trade of Bitcoin has much higher energy consumption than traditional transactions

BitcoinThe trade of Bitcoin has much higher energy consumption than traditional transactions, which increases the costs of transaction, according to Carl-Ludwig Thiele from Bundesbank.

“Even if only one transaction of Bitcoin network takes about 427 kilowatt-hours, this amount of energy reaches the supply of electricity to an average German family for over a month”, explained the banker, Carl-Ludwig Thiele. Thus, according to Bundesbank estimates, the energy consumption of Bitcoin deals is about 515,000 times higher than in a normal transaction.

“From the economic and environmental point of view, the Bitcoin has already reached its limit”, said the banker. “Because the benefit of a Bitcoin as a means of payment is not in reasonable relation to high transfer fees and extremely high energy consumption”, added he.

In addition, there are well-known risks in the digital currency market.

“The Bitcoin is neither recognized by any country as a legal tender, nor is it issued and recognized as an additional means of payment by a central bank”, said Carl-Ludwig Thiele. In his words, the possession of a battleship is risky and highly speculative. In the past days, investors in Bitcoin and other digital currencies have been forced to report significant losses. The course of the most famous cryptocurrency collapsed temporarily even below the 8,000 USD limit. In the middle of December the Bitcoin cost up to 19,265 USD.

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