Although Bitcoin ( BTC), has experienced a 41% increase year-on-year in energy consumption (YoY), despite significant improvements in energy efficiency — there are concerns that the rise could lead to regulators clamping down on cryptocurrency mining.
According to the BMC, Bitcoin mining consumed 0.16% of global energy. This is slightly less than what was used by computer games. It also found that Bitcoin mining consumes a small amount of global energy, which it considers “inconsequential.”
The BMC also found that Bitcoin mining emitted 0.1% of the world’s carbon dioxide emissions, which they deemed “negligible.”
The rise in Bitcoin energy consumption is due to the network’s hashrate increasing 8.34% in Q3 2022, and 73% YoY. This despite less blocks being produced and lower price pressure.
In Q3 2022 #Bitcoin miners efficiency increased by 23% YoY and the sustainable power mix was 59.4%. This is more than 50% for the sixth 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
Glassnode , a blockchain data analytics firm believes that the “hashrate increase” is due to more efficient mining hardware and/or better balance sheets having a greater share of the hashpower network.
The report claimed that Bitcoin mining efficiency has increased by 23% YOY, and 5,814% in the past eight years. However, regulators may be irritated at further energy consumption increases.
Environmentalists are putting pressure on Bitcoin miners, claiming that their power consumption is causing harm to the environment. Greenpeace currently runs the “change code not climate” campaign to urge the Bitcoin network to adopt proof-of-stake. The official account has 1100 followers, however.
FACT: #Bitcoin Mining is responsible for millions of tons of global warming pollution in the US
MYTH: Bitcoin can be greenened by burning “waste” methane
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 published documentation on Oct. 18 that outlined an action plan for implementing the European Green Deal (and the REPowerEU Plan) — both of which are planning to closely monitor crypto mining activities and their impact on the environment.
European Blockchain Observatory and Forum (EUBOG), also recommended that the EU take mitigation measures to reduce the negative impacts of the digital asset sector on the climate.
The EU has requested that its member countries “implement targeted and proportionate steps to reduce the electricity consumption by crypto-asset miners” in order to combat severe cuts in Russian energy.
Related: Researchers claim that Bitcoin’s climate impacts are closer to digital crude than gold.
Despite the rejection by the EU of a March proposal that would have imposed a complete ban on cryptomining, the push for tighter regulation is.
The United States appears to be one step behind its EU counterpart in regulatory movements.
The White House Science Office published a 46 page document in September that examined the energy and climate implications of crypto-assets. However, there were mixed results and no plan was in place.