Fiat Money System’s C02 Footprint 4X that of Bitcoin

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Con­se­quent­ly, they pro­duce larg­er vol­umes of car­bon emis­sions than the BTC ecosys­tem does. The site con­cludes that the tra­di­tion­al finance sys­tems pro­duce near­ly 400 mil­lion met­ric tonnes of Co2 annu­al­ly. That’s four times BTC’s car­bon footprint.

“It’s true that Bit­coin min­ing uses a lot of ener­gy and pro­duces sig­nif­i­cant amounts of waste,” says Trad­ing­Plat­forms’ Edith Reads. She adds, “But it’s also true that the fiat mon­ey sys­tem pro­duces far more waste because of its even greater ener­gy con­sump­tion. The pro­duc­tion of coins, bills, trans­porta­tion, and banks’ secu­ri­ty all require ener­gy. When you com­pare Bit­coin min­ing to these activ­i­ties, its car­bon foot­print isn’t as bad as they make it seems.” 

BTC Con­sumes Less Ener­gy than Lega­cy Finance Systems 

BTC min­ing is often crit­i­cized for its high ener­gy con­sump­tion. How­ev­er, it’s essen­tial to put this num­ber into per­spec­tive. The lega­cy finance sys­tem con­sumes 2.34 bil­lion giga­joules of ener­gy each year. 

BTC min­ing, on the oth­er hand, uses just 540 mil­lion giga­joules. That means that BTC min­ing uses just a frac­tion of the ener­gy of the lega­cy finan­cial sys­tem. Mean­while, gold min­ing and recy­cling con­sume 500 mil­lion giga­joules of ener­gy each year. 

That said, the dif­fi­cul­ty in gold min­ing is increas­ing as deposits dimin­ish. That means that gold min­ing ven­tures will require more ener­gy in the future. That will see their ener­gy demand shoot up significantly. 

Tra­di­tion­al Bank­ing Sys­tems Cost More Economically 

Regard­ing the eco­nom­ic costs of dif­fer­ent activ­i­ties, the lega­cy bank­ing sys­tem is by far the most expen­sive. It costs the glob­al econ­o­my $1.87 quadrillion annu­al­ly to main­tain it. In com­par­i­son, gold min­ing and recy­cling come sec­ond, cost­ing $145 billion. 

Cur­ren­cy print­ing then fol­lows, set­ting back the glob­al econ­o­my by $28 bil­lion. Final­ly, Bit­coin comes in fourth, cost­ing just $400 mil­lion. This data demon­strates that the lega­cy bank­ing sys­tem is sig­nif­i­cant­ly more expen­sive than even the most cost­ly cryptocurrency. 

The full sto­ry and sta­tis­tics can be found here:Fiat Mon­ey Sys­tem’s C02 Foot­print 4X that of Bitcoin

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