Why Bitcoin Is Better Than Banks
Ethereum World News had looked into the possibility of Bitcoin being accepted by the electric car company Tesla as a way for customers to purchase the revolutionary eco-friendly vehicles. Exploring the energy from Bitcoin consumption had not been fully analysed and compared to the entire spectrum of traditional banking and financial services.
We had briefly mentioned that the total energy consumption from banking operations and the process of printing money which probably overshadowed that of BItcoin by a large percentage. Estimating the number of machines and moving parts consumed more energy to create. There was also the aspect of maintaining operations at all banking offices and branches from all around the world which includes running computers, lighting and a few other machines for example.
The CEO of VeriPic John Kwan looked into an alternate way of looking at the impact of the banking system. In a very detailed email, he explained saying:
âA more proper way of looking at the environmental impact of some system is to look at its cost. Money is a way to measure how much resources have been spent on a system. The US Banking system consumes 9% of GDP. That includes all the power used, all the materials used to build and maintain all the bank branches, all the money spent on paying the staff to commute to work. All the resources consumed by the banking staff for an everyday living when this same staff could be doing useful work for some other part of the economy.â
Kwan goes onto say in the email:
âWhen you consider 9% of GDP and compare that to the 600,000 Antminer S9or equivalent around the world securing bitcoin you will see many orders of magnitude difference between what Bitcoin consumes and what the banking system consumes. Hereâs a simple calculation. US GDP is $19.39 Trillion of [which] the banking system consumes 9% of this and it comes out to $1.745 Trillion.â
At the current time of writing Bitcoin is in the red with a 0.51% decrease and is priced at just under $6,470.
What do you think regarding Bitcoin being better than banks? Do the above statements change your ideology of the whole digital currency space? Let us know what you think in the comment section down below!