1/ Just one word about this "paper" trying to prove Bitcoin is more efficient (1.2x to 5x) than the Banking system ... per transaction.

It's just a gigantic pile of crap.




2/ By their own estimates, the lower bound of Bitcoin consumption is about 57.4 TWh/yr (it's rather 128 TWh/yr as per @CambridgeAltFin).

Anyway, let's stick to it.

3/ Bitcoin settles around 300k transactions per day (which is a pathetic throughput btw, less than a 33 kbps modem from the 1990's).

4/ The SWIFT banking system (inter banking transactions) processes more that 42 millions transactions per day.

SWIFT is like the settlement / L1 of the banking system and a lower bound of total nb of transactions.


5/ So the banking system processes, at least, 140x more transactions than Bitcoin.

If it was really 5x more efficient per tx, then the banking system would consume at least :
57*140*5 =

40 000 TWh / year.

= 200% of the total world electricity production (20 000 TWh/yr).

6/ To reach this pathetic conclusion, the authors use all the tools of bad faith at their disposal:
They include everything (buildings, commutes of employees, their laptops, ...) for the banking system, but only ASIC consumption (no building, no cooling, no people) for BTC

7/ They compare theoretical transaction times and turn them into an absurd concept of transaction power. It's a lot of hooey and physical nonsense.

8/ The level of intellectual dishonesty and greenwashing reached by the Bitcoin industry is insulting to intelligence. It's like Marlboro trying to prove that tobacco is good for you.

9/ In reality the proof of work is a gigantic waste of energy. It is thousands of times less efficient per transaction than the current system, and cannot physically scale.


10/ By the way, don't be fooled, this article is not a scientific article: It is self-published and has not been peer-reviewed. Such a pile of nonsense could never have passed the peer review stage. Unfortunately, this impresses those who do not understand academic research.

Sign in to participate in the conversation

A newer server operated by the Mastodon gGmbH non-profit