Bitcoin consumes as much electricity as Switzerland – but the impact is still small

Much of the talk about Bitcoin and Switzerland focuses on linking the cryptocurrency with the country’s native Fiat currency, the Swiss franc. In addition to gold and the Japanese yen, it is often regarded as a “safe haven” for investors.

A recent study by researchers at the University of Cambridge has also found that Bitcoin could consume as much electricity every year as the whole of Switzerland. The same study also found that Bitcoin’s impact on global climate change is “negligible” despite the large amount of energy needed by the crypto network.

The Cambridge Center for Alternative Finance, an academic research center at the University of Cambridge, has launched a new index called “Cambridge Bitcoin Electricity Consumption Index,” which measures variables and metrics related to Bitcoin’s energy use.

The Index website offers a wealth of interesting facts and comparisons of bitcoin energy use – from the number of years it would take to heat all the tea kettles in the UK to the fact that the university would need 365 years of operation, to consume as much energy as Bitcoin needs in just one year.display

The comparative study also claims that the Bitcoin network consumes more energy in one year than the whole of Switzerland. Switzerland is known as a hub for business and finance and its large data centers – but still uses less energy than the number one cryptocurrency. The researchers behind the study nevertheless claim that the impact of Bitcoin on its contribution to climate change is “negligible” ,

It is said that lightning never hits the same spot twice in a row, but bitcoin has been compared to Switzerland many times already. Not only in terms of energy consumption, the cryptocurrency is also compared with the country’s Fiat currency – the Swiss franc.

With the impending collapse of the economy fueled by the Trump Administration’s Trade Wars monument, safe haven assets are signaling that investors are preparing for the worst and securing their capital.

But investors do not just seem to swap stocks and other riskier assets for safe haven assets like gold, the Japanese yen or the Swiss franc, they also seem to buy bitcoin.

The four assets have tightly correlated price charts – suggesting that all four of them are considered a security in the midst of the economic downturn that we might face in the coming days, weeks, months or years.

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