https://ift.tt/3eMYE8t Bitcoin Is More Energy Efficienct Than TradFi

Morgan Creek Digital co-founder and long-time Bitcoin bull Anthony “Pomp” Pompliano claims that Bitcoin is more energy efficient than the traditional financial system (“TradFi”) due to its scaling metrics.

During a recent interview on CNBC’s “Squawk Box”, Pomp told co-anchor Joe Kernen that Bitcoin has an advantage over the traditional banking system in that it becomes more efficient with scale. 

As reported by The Daily Hodl, Pomp explained:

“There’s a linear relationship between energy consumption and the US dollar system. So in order to support more users and more transactions, we need to consume more energy. We need more data centers, more bank branches, more ATMs, et cetera.

“The Bitcoin blockchain, the layer-1, doesn’t have that same linear relationship. So regardless of how many transactions fit into a block of transactions, there is the same energy consumption.

“So as it scales, Bitcoin becomes more and more efficient because you can pack more economic value into each one of those blocks, whereas in the legacy system, as you scale, you need to consume more energy.“

In addition, Pomp said the crypto industry should not feel apologetic over the use of energy, arguing that “important things in the world use energy.” He told Kernen that a very large percentage of Bitcoin’s consumption was in the form of renewable energy, which was leading to the development of new technologies in the space. 

He continued:

If you want to protect your purchasing power in a world of undisciplined monetary and fiscal policy, what you have is a decentralized network of computers around the world that are securing that purchasing power and they’re defending it for you, and I think that’s why you see over 100 million people around the world who have adopted this asset.

Disclaimer

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.