Bitcoin’s energy consumption has increased by 41% compared to the previous year, raising concerns that regulators might impose stricter rules on mining activities. This data was revealed in a report from the Bitcoin Mining Council (BMC), representing 51 major Bitcoin mining companies.
According to the report, Bitcoin mining currently consumes 0.16% of global energy production, a bit less than what computer games consume. The BMC considers this energy usage to be insignificant on a global scale. In addition, Bitcoin mining contributes to 0.10% of the world’s carbon emissions, which is deemed to be minimal.
The rise in Bitcoin’s energy consumption is linked to an 8.34% increase in the network’s hashrate in the third quarter of 2022 and a 73% increase year-over-year, despite a decrease in the number of blocks produced and downward price pressure.
In Q3 2022, #Bitcoin mining efficiency increased 23% YoY, and sustainable power mix was 59.4%, above 50% for the 6th quarter in a row. The network was 73% more secure YoY, only using 41% more energy, and is now 99% of all crypto hashing power.https://t.co/B0jlkWHYgg
— Michael Saylor⚡️ (@saylor) October 18, 2022
According to blockchain data analytics firm Glassnode, the increase in hashrate is due to more efficient mining hardware coming online and miners with stronger financial positions having a larger share of the network’s hash power.
Despite claims of improved mining efficiency and sustainable power usage, continued growth in energy consumption could attract the attention of regulators concerned about the environmental impact. Environmentalists are already pressuring Bitcoin miners to reduce their energy consumption, with campaigns such as Greenpeace’s “change the code not the climate” advocating for a shift to a proof of stake system.
FACT: #Bitcoin mining is driving millions of tons of new global warming pollution in the US
MYTH: Burning “waste” methane can green bitcoin
REALITY: Burning waste gas does nothing to reduce fossil fuel consumption and is even keeping old gas wells open https://t.co/o4Er21GVoo
— Greenpeace USA (@greenpeaceusa) October 17, 2022
The European Union recently outlined plans to monitor crypto mining activities and their environmental impact as part of the European Green Deal and the REPowerEU Plan. The European Blockchain Observatory and Forum recommended mitigation measures to reduce the climate impact of the digital asset sector, which is being implemented by some EU member states.
Regulatory efforts are also increasing in the U.S., with the White House Science Office investigating the climate and energy implications of crypto-assets. However, specific plans or regulations have not been finalized yet.
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