The comparison between Bitcoin and traditional finance continues, and this time, Morgan Creek’s Anthony Pompliano is making an analysis in terms of energy efficiency.
Bitcoin vs. traditional finance
As the online publication the Daily Hodl notes, Bitcoin (BTC) skeptics have been often talking about BTC’s environmental impact, but Anthony Pompliano just said that the king coin has a distinct energy advantage over the traditional financial system.
He recently talked to CNBC in a new interview and said that Bitcoin becomes more efficient as it scales.
“There’s a linear relationship between energy consumption and the US dollar system. So in order to support more users and more transactions, we need to consume more energy. We need more data centers, more bank branches, more ATMs, et cetera. The Bitcoin blockchain, the layer-1, doesn’t have that same linear relationship.”
He continued and said:
“So regardless of how many transactions fit into a block of transactions, there is the same energy consumption. So as it scales, Bitcoin becomes more and more efficient because you can pack more economic value into each one of those blocks, whereas in the legacy system, as you scale, you need to consume more energy.”
Pompliano also said that the Bitcoin community “shouldn’t apologize” for using energy.
“When you ultimately look at Bitcoin specifically, a very large percentage of the mix is actually renewable energy – it’s driving all sorts of R&D [research and development] in the renewable space, and what we start to see is that if you want to protect your purchasing power, that is the key to Bitcoin.”
Regarding the price of Bitcoin today, at the moment of writing this article, BTC is trading in the red, and the king coin is priced at $46,760.
Stay tuned for more news, and make sure to keep your eyes peeled on the crypto market.