Bitcoin consumes million times more energy than credit cards: IMF report
The IMF has focused on Bitcoin’s energy consumption in its new report
According to an new report published by the International Monetary Fund, Bitcoin, the world’s largest cryptocurrency, consumes a million times more energy than credit cards. The calculations are based on scientific and private sector publications.
Image by blogs.imf.org
The report, which was panned by Xavier Lavayssièr, Germán Villegas Bauer and Itai Agur, also shows that central bank digital currencies (CBDCs) and some private cryptocurrencies are actually more efficient than traditional payment systems.
As of today, credit and debit cards are responsible for the vast majority of all cashless transactions.
The paper advocates abolishing the proof-of-work consensus system and using authorized systems to make a giant green leap.
Ethereum, the second-largest blockchain, is expected to transition to proof-of-stake later this year, reducing energy consumption by as much as 99.95%.
The IMF researchers conclude that power consumption should also be one of the considerations in debates about the future of money.