In the simplest terms, your brain needs rest. It needs sleep to do a bit of a reset. When you aren’t sleeping, your brain is overworked and your functioning begins to decline. I don’t think it’s the expenditure of energy, as much as it is a lack of the reset.
A “function of sleep is to allow glial lymphatics in the brain to clear out proteins and other toxins that have deposited during the day. All of this goes to show that a good night’s sleep really can bring clarity. So, the next time you’re struggling to make a decision and someone tells you to “sleep on it”—that might be really good advice”
https://directorsblog.nih.gov/2017/02/14/how-sleep-resets-the-brain/
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