Cryptocurrency enthusiasts had their eyes opened recently when the Central Bank of The Netherlands revealed details of an operation to transfer $15 billion in the form of 200,000kg of bars and coins from one storage center to another. This astounding revelation made people realize the amount of energy and resources required to make such a transaction and compared to what it would cost in Bitcoin, the difference is staggering. It is estimated that executing an identical task with Bitcoin would take only 10 minutes with a cost of a few dollars in transactional fees.
This comparison reignited the debate between Bitcoin supporters and critics on whether or not Bitcoin is suitable for everyday use. Critics have increasingly argued that Bitcoin's electricity consumption is excessive; however, a very recent study done by CoinShares revealed that this notion is grossly exaggerated, as Bitcoin is estimated to consume less electricity than tumble dryers and only 50% of that of data centers.
Given the copious amounts of resources and manpower required for such monetary transfer, provides us with insight on the advantage of using Bitcoin as a form of payment for goods and services. This is compounded by the cost-effectiveness and the security offered by the blockchain.
To sum up, the revelation of the Central Bank of The Netherlands' operation to transfer $15 billion provides an excellent comparison for how a similar task would be accomplished using Bitcoin. Such comparisons reignite questions of Bitcoin's utility and electricity consumption, both of which can be answered side by side with fascinating data on the cost-effectiveness, security, and speed that blockchain-enabled technology has to offer.
Leonardo Cox
- 2023-05-19
Comparing Traditional and Bitcoin Transaction Methods
A recent transfer of $15 billion by the Central Bank of The Netherlands called attention to the cost savings and other advantages of blockchain-enabled technology versus traditional transfer methods.
