The founder of investment company Morgan Creek Digital, Anthony Pompliano, sees great value in Bitcoin and believes that the electricity costs to maintain its ecosystem are fully justified.
In an interview on CNBC’s Squawk Box, Anthony Pompliano statedthat many experts are missing out on “key points” in the “climate argument” against the Bitcoin ecosystem, especially in terms of comparisons to fiat currencies such as the US dollar. Pompliano explained:
“There is a linear relationship between energy consumption and the dollar system. To support more users and more transactions, we need to consume more energy, we need more data centers, bank branches and ATMs. In Bitcoin, regardless of the number of transactions per block, each block consumes the same amount of energy. As it scales, Bitcoin will become more efficient, which will increase the economic value of each block. We do not have to apologize for Bitcoin’s use of energy as important things in the world use energy. ”
According to the Cambridge Electricity Consumption Index, the Bitcoin ecosystem consumes 125.04 TWh, which is similar to the annual energy consumption of smaller countries such as Chile or the Philippines. In September, Bloomberg analysts reported that the energy consumption of miners in 2021 exceeded 91 TW / h, while in 2020 this figure was about 67 TW / h.
As Galaxy Digital researchers stated in May, the traditional banking system and the gold mining industry individually consume twice as much electricity as Bitcoin. In addition, in March, Coin Metrics co-founder Nick Carter denied claims that Bitcoin mining could cause an environmental disaster due to high energy consumption.
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