Bitcoin Uses 0.54% of Global Energy - What About Banks?

The Cambridge Digital Mining Industry Report estimates that Bitcoin mining consumes around 138 terawatt-hours (TWh) of electricity per year - about 0.54% of the world’s total energy usage.

Wouldn’t it be fascinating to compare that to the energy footprint of the global banking system?

I went looking for numbers - and surprisingly, there doesn’t seem to be any in-depth research on the subject. Yet a methodology does exist. It was published back in 2021 and tested on data from Santander Group, one of Europe’s largest banks. The authors claim their model was accurate within ±6.6% compared to Santander’s official sustainability reports.

Of course, Bitcoin isn't a perfect replacement for the entire banking system:

• It does a great job at recording who owns what - arguably even better than banks, since there's no way for hiding or cheating on a public blockchain.
• It gives users more freedom to access and move their funds, without needing approval or risking account freezes.
• On the flip side, it still struggles when it comes to payments.

But if Bitcoin is already matching banks in areas like custody, accounting, and control, then it seems fair to compare their energy use as well.

What do you think such a comparison would reveal?

Personally, I have serious doubts about the efficiency of the traditional banking system. That’s why at rabbit.io, we skip banks altogether. No fiat, no custodians - just crypto-to-crypto swaps.

BTW, look at this sharp observation from well-known Bitcoiner Corndalorian on banks and energy.