Despite substantial gains in energy efficiency and a more diversified and sustainable energy mix, Bitcoin has witnessed a 41% spike in yearly energy usage, raising fears that regulators may target cryptocurrency mining in the near future.
That information was presented by the Global Bitcoin Mining data Review of the third quarter of 2022, by the Bitcoin Mining Council (BMC) – an institute that represents 51 of the biggest Bitcoin mining firms.
According to the analysis, Bitcoin mining uses 0.16% of world energy output, which is significantly less than the energy spent by computer games — and an amount it considers to be “an insignificant quantity of global energy.”
Furthermore, the process of mining Bitcoin contributed to 0.10% of global carbon emissions. BMC characterized it as “trifling” at this rate. T
The increase in energy needed by Bitcoin follows pace, as the network’s hash rate increased by 8.34% in Q3 2022 and 73% year on year, despite little price pressure and the generation of only a few blocks.
Fears Of Regulatory Sanction Rise As Bitcoin Energy Use Goes Up
According to Glassnode, the hash rate surge is attributable to more efficient mining gear coming online and/or miners with superior balance sheets obtaining a higher proportion of the hash power network.
Environmentalists are putting pressure on Bitcoin miners, claiming that their power use is damaging to the environment.
Greenpeace is now launching a campaign called “change the code, not the climate” to push the Bitcoin network to switch to proof-of-stake.
On October 18, the European Union published documents presenting an action plan to execute the European Green Deal and the REPowerEU Plan, both of which aim to keep a close eye on crypto mining activities and their environmental repercussions.
The European Blockchain Observatory and Forum (EUBOG) has urged that the EU implement mitigating measures to mitigate the negative effects of the digital asset industry on the environment.
Despite the EU’s rejection of a proposal in March that would have put a total ban on cryptocurrency mining, the demand for more regulation persists.
Regulatory changes in the United States appear to be trailing behind those in the EU.
In September, the White House Science Office issued a 46-page assessment on the environment and energy implications of crypto-assets. However, contradicting conclusions were obtained, and no significant plan is now in the works.