BTC's energy consumption jumped 41% in 12 months, increasing regulatory risks

Although the European Union rejected a proposal banning crypto mining earlier this year, more regulations may soon be put in place. works to mitigate the environmental impacts of crypto mining.

Bitcoin (BTC) saw a 41% increase in energy consumption year over year (YoY) despite dramatic improvements in energy efficiency and a more diverse and sustainable energy mix - but it is feared that this increase will cause regulators to crack down on mining.

The data comes from a third quarter 2022 report from 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 global energy production, slightly less than the energy consumed by computer games according to the BMC - and an amount that it considered "an inconsequential quantity of the world's energy".

Bitcoin mining also emitted 0.10% of global carbon emissions that the BMC has deemed "negligible".

Bitcoin's rise in energy consumption comes as the network's hashrate grew 8.34% in Q3 2022 and 73% year-over-year, despite producing fewer blocks and pressure down in prices.

In Q3 2022, #Bitcoin mining efficiency increased 23% YoY and sustainable energy mix was 59.4%, above 50% for the 6th consecutive quarter. The network was 73% more secure year-over-year, using only 41% more energy, and now accounts for 99% of all crypto hash power.https://t.co/B0jlkWHYgg

Blockchain data analytics firm Glassnode opines that “the increase in hash rate is due to more efficient mining hardware coming online and/or miners with superior balance sheets having a larger share of the hash power network".

While the report also claimed Bitcoin mining efficiency increased by 23% YoY...