Is XRP More Sustainable Than Bitcoin? Debate Sparked by Differences in Energy Consumption

▲ Bitcoin (BTC), XRP / ChatGPT-generated image ©

Amid intensifying debate over energy costs between Bitcoin (BTC), which uses a proof-of-work mechanism, and XRP (Ripple), which operates on a relatively lightweight network, a new analysis claiming that XRP reduces energy consumption by as much as 99.999% compared to Bitcoin is drawing significant market attention.

According to cryptocurrency media outlet Bitcoinist on February 27 (local time), technical analyst Bullenors recently released a report highlighting the stark gap in annual electricity consumption between the two networks, rekindling a long-standing rivalry. The report estimates that running the entire XRP network for one year costs only about $73,000 in electricity, whereas the Bitcoin network consumed more than $10 billion worth of power over the same period.

The difference becomes even more striking when measured per transaction. A single Bitcoin transaction consumes between 1,100 and 1,400 kilowatt-hours of electricity—enough to power an average U.S. household for 38 to 49 days. In contrast, a single XRP transaction requires just 0.0079 kilowatt-hours, roughly equivalent to powering a light bulb for only a few seconds. Based on these figures, Bullenors concluded that XRP reduces electricity consumption by up to 99.999% compared to Bitcoin.

The root cause of this dramatic energy gap lies in the different methods each blockchain uses to validate transactions. Bitcoin’s proof-of-work system relies on miners worldwide competing with energy-intensive hardware to solve complex mathematical problems. XRP, by contrast, does not involve mining. Instead, it employs a unique ledger protocol consensus algorithm in which a group of trusted nodes reach agreement through multiple rounds of communication and voting, enabling efficient transaction processing without competition or excessive energy consumption.

The release of these striking figures sparked fierce debate within the crypto community. Bitcoin advocates argued that its substantial energy use is not wasteful but an essential process for maintaining network security. They described Bitcoin’s proof-of-work mechanism as a system that transforms real-world energy into unforgeable digital scarcity. They also questioned XRP’s decentralization, noting that Ripple holds a large supply of tokens and can potentially influence circulation without the constraints of a hard cap.

In response, XRP supporters pushed back, highlighting the network’s overwhelming energy efficiency. They argued that XRP Ledger’s eco-friendliness far surpasses not only Bitcoin but also Ethereum (ETH), which transitioned to a proof-of-stake model in 2022. Participants in the XRP ecosystem emphasized that both on a per-transaction basis and across the entire network, XRP demonstrates significantly superior energy efficiency compared to Ethereum, reinforcing claims of its technical advantage.

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