Michel is the founder of Valuechain, a consulting startup specialized in payments and cryptopayments consulting. He recently published a paper analyzing the energy efficiency of bitcoin payments and comparing them to payments with the traditional financial system.
Many recent studies evaluated and criticised Bitcoin’s energy consumption through its Proof of Work (PoW) consensus mechanism without evaluating its efficiency compared to the classical electronic payment system. Based on physics, information science and economics, we compute and compare the energy consumption and define what is the energy efficiency of both the current monetary payment system and Bitcoin.
Energy Efficiency of Bitcoin