Although the European Union rejected a proposal to ban crypto-mining earlier this year, more regulations to reduce the environmental impact of crypto-mining could soon be introduced.
has seen a 41% increase in energy consumption year-over-year (YoY) despite dramatic improvements in energy efficiency and a more diverse and sustainable energy mix, but there are concerns that the increase will tighten regulations on crypto-mining.
The data comes from a Q3 2022 report by the Bitcoin Mining Council (BMC), which represents 51 of the world’s largest bitcoin mining companies.
The report found that Bitcoin mining consumes 0.16% of global energy production, slightly less than the energy consumed by computer games, according to BMC, and an amount that is considered “an inconsequential amount of global energy”. “.
Bitcoin mining also emitted 0.10% of the world’s carbon emissions, which BMC deemed “negligible”.
The increase in Bitcoin’s energy consumption comes as the network’s hash rate increases by 8.34% in Q3 2022 and 73% year-on-year, despite fewer blocks being produced and pressure on demand. decrease in prices.
Blockchain data analysis company Glassnode believes that the “increased hash rate is due to more efficient mining hardware coming online and/or miners with superior balance with a higher share of the hash power network.” “.
While the report also claimed that Bitcoin mining efficiency has increased by 23% year-on-year and 5,814% over the past eight years, further increases in overall energy consumption could draw the ire of regulators who ‘Research subject.
Pressure on Bitcoin miners is mounting from environmentalists who claim their energy consumption is bad for the environment. Greenpeace is currently running the “Change the code, not the climate” campaign to encourage the Bitcoin network to move to proof of play. However, the official account has only amassed 1,100 followers so far.
On October 18, the European Union released documentation outlining an action plan to implement the European Green Deal and the REPowerEU plan, with both planning to closely monitor crypto-mining activities and their environmental effects.
The European Blockchain Observatory and Forum (EUBOG) also suggested that the EU adopt mitigation measures to reduce the negative effects on the climate caused by the digital asset sector.
This suggestion has already been implemented to some extent, with the EU calling on its member states to “implement specific and proportionate measures to reduce the electricity consumption of crypto miners” to combat the severe cut in Russian-supplied power. .
Related: Researchers Claim Bitcoin’s Climate Impact Is Closer to ‘Digital Crude’ Than Gold
The push for stricter regulation comes despite the EU rejecting a proposal in March that would have called for an outright ban on crypto-mining.
As for the US, regulatory moves seem to be a step behind their EU counterpart.
In September, the White House Office of Science released a 46-page paper looking at the climate and energy implications of crypto assets. However, mixed conclusions have been reached and a meaningful plan is not yet in place.