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BITCOIN vs. GOLD: Which One’s A Bubble & How Much Energy Do They Really Consume

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Published : November 02nd, 2017
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Category : Gold and Silver

If you are investing in either Bitcoin or Gold, it’s important to understand which asset is behaving more like a bubble than the other.  While it’s impossible to understand how the market will value these two very different assets in the future, we can provide some logical analysis that might remove some of the mystery associated with the market price of Bitcoin versus Gold.

I’ve read some analysis on Bitcoin profitability and energy consumption that seemed unreliable, so I thought I would put my two cents in on the subject.

For example, many sites are using the Digiconomist’s work on Bitcoin energy consumption.  However, I believe this analysis has overstated Bitcoin’s energy consumption by a large degree.  According to the Digiconomist, Bitcoin’s annual electric use is approximately 24 TerraWatts per year (TWh/yr):

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Data and Statistics for these countries : Georgia | All
Gold and Silver Prices for these countries : Georgia | All
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Andrew Hoffman was a buy-side and sell-side analyst in the United States (including six years as an II-ranked oilfield service analyst at Salomon Smith Barney), but since 2002 his focus has been entirely in the metals markets, principally gold and silver. He recently worked as a consultant to junior mining companies, head of Corporate Development, and VP of Investor Relations for different mining ventures, and is now the Director of Marketing for Miles Franklin, a U.S.-based bullion dealer.
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