Despite significant advancements in energy efficiency and a more diverse and sustainable energy mix, Bitcoin tickers down have witnessed a 41% year-over-year increase in energy usage, as reported by Cointelegraph.
However, there are concerns the spike may lead to regulatory restrictions on mining.
The information is based on a Q3 2022 report from the Bitcoin Mining Council (BMC), which is made up of 51 of the biggest Bitcoin mining businesses in the globe.
The survey discovered that Bitcoin mining used 0.16% of the energy produced worldwide, which is “an infinitesimal quantity of global energy” according to the BMC, and only slightly more than the energy used by video games.
Additionally, the BMC found the carbon emissions from bitcoin mining to be “negligible,” at 0.10 percent of global emissions. Despite fewer blocks being created and downward price pressure, the network’s hashrate climbed by 73% YoY and 8.34% in Q3 2022, which coincides with an increase in Bitcoin energy usage.
According to blockchain data analytics company Glassnode, “miners with better balance sheets having a larger proportion of the hash power network” and/or the introduction of more efficient mining hardware are to blame for the increase in hashrate, Cointelegraph stated.
Although the survey also asserted that the efficiency of Bitcoin mining has grown by 23% YoY and 5,814% over the previous eight years, additional increases in total energy consumption may anger regulators looking into the matter.
The European Union (EU) published information on October 18 outlining an action plan to implement the European Green Deal and the REPowerEU Plan, both of which include a commitment to closely monitor crypto mining operations and their environmental impacts.
Cointelegraph further noted that the European Blockchain Observatory and Forum (EUBOG) also recommended that the EU take mitigating steps to decrease the unfavourable effects that the digital asset sector has on the environment.
(With insights from Cointelegraph)
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