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BTC energy use jumps 41% in 12 months increasing regulatory risks

BTC energy use jumps 41 in 12 months increasing regulatory risks

BTC energy use jumps 41% in 12 months increasing regulatory risks

Bitcoin (BTCtickers down $19,160) has seen a 41% YoY increase in energy use despite dramatic improvements in energy efficiency and a more diverse and sustainable energy mix, but there are concerns the surge could see regulators. crack down 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 the world’s energy production, slightly less consumed by computer games, according to BMC, and an amount it considered “an insignificant amount of global energy.”

Bitcoin’s surge in energy consumption comes as the network’s hash rate rose 8.34% in Q3 2022 and 73% year-on-year, despite fewer blocks being produced and pushing prices lower.

Blockchain data analysis company Glassnode believes that the “increased hash rate is due to more efficient mining hardware coming online and/or miners with higher balances having a larger stake in the hash power network.”

While the report also claims that bitcoin mining efficiency is up 23% year over year and 5,814% over the past eight years, a further increase in overall energy consumption could draw the wrath of regulators investigating the issue. Pressure is mounting on bitcoin miners from environmentalists claiming their energy use is bad for the environment.

Greenpeace is currently running the “Change the code, not the climate” campaign to encourage the bitcoin network to take the participation test to deliver. However, the official account has only amassed 1,100 followers so far.

On October 18th, the European Union released a documentary outlining an action plan to implement the European Green Deal and the REPowerEU plan, both of which plan to closely monitor crypto mining activities and their environmental impact.

The European Blockchain Observatory and Forum (EUBOG) has also suggested that the EU adopt mitigation measures to reduce the negative climate impacts caused by the digital assets sector. This proposal has already been partially implemented, with the EU asking its member states to take specific and proportionate measures to reduce electricity consumption by crypto miners to counteract the severe power disruption from Russia. The push for tighter regulation comes despite the EU rejecting a proposal in March that would have imposed a total ban on crypto mining.

As for the US, regulatory moves appear to be lagging behind their EU counterparts. In September, the White House Science Office released a 46-page paper looking at the climate and energy impacts of crypto assets. However, mixed conclusions have been drawn and a meaningful plan is not yet in the works.

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