A recent study reveals a 41% increase in fresh block creation on the Bitcoin (BTC) network. According to a report by the Bitcoin Mining Council, the third quarter of 2022 saw a dramatic increase in the energy usage of Bitcoin mining rigs (BMC).
Even if new technology and efforts have been used to mine Bitcoin over the past year, the data reveals a 41% increase in energy consumption for the largest cryptocurrency.
Over 50 of the major mining businesses in the world are represented in the BMC report, which has raised further questions about regulation in the industry.
The BMC believes the energy used by miners, which accounts for 0.16 percent of worldwide energy use, to be “inconsequential” because it is less than that used by video games. 0.10% of the world’s carbon emissions caused by mining activities are “negligible.”
The network’s hashrate has climbed by more than 8% in the third quarter of 2022 despite fewer blocks being generated. Glassnode, a blockchain analytics company, says that the increase in hash rates is caused by miners’ use of more advanced hardware, which consumes more energy.
Following worries about climate change, the energy consumption of Proof-of-Work (PoW) blockchains has become a significant problem. In its campaign against climate change, Greenpeace has urged Bitcoin to “change the code, not the climate.”
Environmentalists have been quite concerned about bitcoin mining because they believe it is bad for the environment. Although the BMC considers the energy use of BTC to be insignificant in comparison to other industries, its assessment of a 41% increase may prompt the government to impose tighter rules on cryptocurrency mining.
For example, although the European Union’s Markets in Crypto assets bill (MiCa) is about imposing identity checks on transactions and anti-money laundering measures, it will require market participants disclose their carbon footprint.