Energy Consumption: Proof-of-Work vs Banking System

Bitcoin mining consumes more electricity than Argentina, drawing environmental backlash, but proponents counter that the traditional banking system's data centers, branches, armored trucks, and ATM networks consume even more energy per transaction on aggregate. A 2023 Galaxy Digital report found bank system energy use is 2.3 times higher than Bitcoin mining per equivalent transaction, while a Cambridge study shows Bitcoin's carbon intensity dropped 40% since 2021 due to greener grid mix.