Home
News
- Regulations could soon be implemented to mitigate the environmental impacts of crypto mining
- BTC Price at the time of writing – $19,189.38
- BTC Hasrate increased by 8.34%
Despite significant improvements in energy efficiency and a more diverse and sustainable energy mix, Bitcoin’s energy consumption has increased by 41% year-over-year (YoY).
However, there are concerns that the rise could lead regulators to clamp down on crypto mining.
The Bitcoin Mining Council (BMC), which represents 51 of the largest Bitcoin mining businesses worldwide, compiled the data in a report for the third quarter of 2022.
According to the BMC, Bitcoin mining accounts for “an inconsequential amount of global energy” and consumes 0.16 percent of global energy production, which is less than what computer games use.
Bitcoin mining efficiency to have increased by 23%
The BMC deemed Bitcoin mining’s 0.10 percent contribution to global carbon emissions to be negligible. Despite fewer blocks being produced and price pressure, the network’s hashrate increased 7.3% year-over-year in Q3 2022, resulting in an increase in Bitcoin energy consumption of 8.34 percent.
According to Glassnode, a blockchain data analytics company, the hashrate rise is due to the coming online of more efficient mining hardware and/or miners with superior balance sheets having a larger share of the hash power network.
Even though the report said that the efficiency of mining Bitcoin had increased by 5,814% year-over-year and 23% year-over-year over the past eight years, regulators who are looking into the issue may be irritated by further increases in overall energy consumption.
Environmentalists are putting more and more pressure on Bitcoin miners, claiming that the cryptocurrency’s power consumption is harmful to the environment. To encourage the Bitcoin network to switch to proof-of-stake, Greenpeace is currently running the campaign known as change the code, not the climate.
The official account, on the other hand, only has 1100 followers at this point. The REPowerEU Plan and the European Green Deal, which both intend to keep a close eye on crypto mining activities and their effects on the environment, were both outlined in documents that were made available by the European Union on October 18.
ALSO READ: Neymar, Eminem, & Madonna Lose Millions on NFTs
European Union released documentation outlining an action plan
Additionally, the European Union (EU) was urged to take measures to mitigate the negative effects of the digital asset industry on the environment by the European Blockchain Observatory and Forum (EUBOG).
The European Union (EU) has asked its member states to “implement targeted and proportionate measures to lower the electricity consumption of crypto-asset miners” in response to the severe reduction in Russia’s energy supply.
Despite the EU’s rejection of a proposal in March that would have imposed a total ban on crypto mining, there is a push for tighter regulation. Regulations in the United States appear to be further behind those in the EU.
A 46-page report on the effects of crypto-assets on climate and energy was released in September by the White House Science Office. However, no significant plan has yet been developed, and mixed conclusions were reached.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
