As concerns about the ecological impact of Proof of Work (PoW) cryptocurrencies like Bitcoin (BTC) grow, the latest data shows that the largest crypto blockchain may not be so damaging to the environment after everything.
In fact, a report released by the Bitcoin Mining Council (BMC) on April 25 found that the electricity consumption of the Bitcoin network decreased by 25% in the first quarter of 2022, compared to the same period a year earlier. .
The BMC is a group of 44 Bitcoin mining companies that would represent 50% of the global Bitcoin network or 100.0 exahash (EH). Its latest report is the result of a survey of its member companies, in terms of electricity consumption, energy sources and hashrate.
According to Michael Saylor, group figurehead and CEO of MicroStrategy:
“In the first quarter of 2022, the hashrate and associated security of the Bitcoin network improved by 23% year-over-year while energy consumption decreased by 25%. We’ve seen a 63% year-over-year increase in efficiency due to advances in semiconductor technology, the rapid expansion of North American mining, the exodus Chinese and global adoption of sustainable energy and modern bitcoin mining techniques. »
Put simply, Bitcoin mining hashrate is up 23% year over year (YoY) and power consumption is down 25% YoY due to an increase in efficiency by 63%. Meanwhile, the report also showed that Bitcoin “uses an insignificant amount of global energy (16 basis points) and generates negligible carbon emissions (8 basis points), while being “the industry leader in sustainability with a sustainable energy mix at 58”.
Environmental concerns regarding energy consumption
Interestingly, these findings came after a group of U.S. lawmakers asked the U.S. Environmental Protection Agency (EPA) to analyze whether the country’s crypto mining companies were complying with its privacy laws. the environment.
In the letter to the agency, they expressed “serious concerns” about “the inherently power-inefficient proof-of-work mining technology for validating transactions,” as Finbold previously reported.
In March, New York’s crypto community created a petition to block the passage of a controversial New York Assembly bill that would impose a moratorium on specific PoW crypto mining operations in the state. .
At the same time, some cities in the United States, such as Fort Worth in Texas, are actively working to become more “crypto-friendly”.