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Pomp: Bitcoin Is More Energy Efficienct Than TradFi

Pomp: Bitcoin Is More Energy Efficienct Than TradFi
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Morgan Creek Digital co-founder and longtime Bitcoin bull Anthony “Pomp” Pompliano claims that Bitcoin is more energy efficient than the traditional financial system (“TradFi”) due to its scaling metrics.

During a recent interview on CNBC’s “Squawk Box,” Pompeo told co-host Joe Kernan that Bitcoin has an advantage over the traditional banking system in that it becomes more efficient with scale.

As reported by The Daily Hodl, Pomp explained:

There is 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 power. We need more data centers, more bank branches, more ATMs, etc.




The Bitcoin blockchain, Layer 1, does not have the same linear relationship. So no matter how many transactions fit into the block of transactions, there is the same power consumption.

As it gets bigger, Bitcoin becomes more efficient because you can accumulate more economic value in each one of these blocks, whereas in the old system, the more you scale, you need to consume more energy.

In addition, Pomp said that the crypto industry should not feel apologetic about energy use, arguing that “the important things in the world use energy.” Kernen said that a very large proportion of Bitcoin consumption has been in the form of renewable energy, which has led to the development of new technologies in the space.

He completed:

If you want to protect your purchasing power in the world of uncontrolled monetary and fiscal policy, what you have is a decentralized network of computers around the world that secures and defends that purchasing power on your behalf, and I think that is why. You see over 100 million people around the world who have adopted this asset.

disclaimer

The opinions and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only, and do not constitute financial, investment or other advice. Investing or trading in crypto assets involves the risk of financial loss.

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