Morgan Creek Digital co-founder Anthony Pompliano aka “Pomp” claimed that Bitcoin is more energy efficient than the traditional financial system (TradFi) due to its scaling metrics.
Arguing that Bitcoin is more advantageous than the traditional banking system in a recent interview with CNBC, Pomp said,
There is a linear relationship between energy consumption and the US dollar system. Therefore, more energy needs to be consumed to support more users and more processes. More data centers, more bank branches, more ATMs and so on are needed. Bitcoin blockchain, layer-1 does not have the same linear relationship. In other words, no matter how many transactions fit in a transaction block, the same energy consumption is in question. So Bitcoin becomes more and more efficient because you can fit more economic value into each of these blocks. Whereas, in the old system, you need to consume more energy as you scale up.
said.
Stating that a large part of Bitcoin consumption is renewable energy, which leads to the development of new technologies, Pomp argued that important things in the world use more energy.
In addition, adding that the crypto industry should apologize for the use of energy, Pomp ended his speech with the following words:
If you want to maintain your purchasing power in a world of undisciplined monetary and fiscal policy, what you have is a worldwide decentralized computer network that secures that purchasing power and defends it for you, and I think that’s why you see over 100 million people around the world adopting this asset.