The EU had recently rejected a proposal that urged to impose a ban on crypto mining this year. However, it is expected that many more regulations might be implemented in the near future. It will be done in an effort to control or reduce the environmental effects imposed by crypto mining. Despite countless measures to improve energy efficiency, Bitcoin has still managed to witness more than a 40% increase in energy consumption.
Keeping such a rise in mind, it is expected that regulators are highly likely to act against crypto mining. The Bitcoin Mining Council is responsible for representing the 51 largest crypto-mining companies around the globe. It is the one responsible for providing this data. As mentioned in its Q3 report, it was understood that Bitcoin mining consumes a total of 0.16% of the world’s overall energy production. On the other hand, Bitcoin is also responsible for 0.10% of the world’s carbon emissions.
In Q3 2022, #Bitcoin mining efficiency increased 23% YoY, and sustainable power mix was 59.4%, above 50% for the 6th quarter in a row. The network was 73% more secure YoY, only using 41% more energy, and is now 99% of all crypto hashing power.https://t.co/B0jlkWHYgg
— Michael Saylor⚡️ (@saylor) October 18, 2022
Furthermore, the increased energy consumption can be linked to the increase in the network’s hash rate by 8.34% in the third quarter of this year. It is believed that the increase in the hash rate is a direct result of efficient mining hardware being used. Also, miners have better balance sheets holding a greater percentage of the hash power network.
Bitcoin Mining in Hot Waters
Bitcoin miners are experiencing pressure from environmentalists claiming that such great energy consumption poses a threat to the environment. On 18 October, the EU presented an outline highlighting multiple action plan to implement the European Green Deal and REPowerEU Plan. Both of these are crafted with the purpose of overseeing and analyzing crypto-mining activities and their effects on the environment.
On the other hand, the European Blockchain Observatory and Forum also came forward with the suggestion of considering multiple measures to control the impacts on the environment caused by the digital asset sector. As of now, these measures have already been implemented to a limited degree. The main aim is to lower overall energy consumption in order to battle cuts in energy supplied by Russia.
Boosting the implementation of tighter regulations hails from the EU rejecting a proposal earlier this year. It is worth mentioning that the proposal would have inevitably imposed a ban on crypto mining. Summing it up, it seems that regulatory councils in the US are one step behind the ones in the EU.