Bitcoin hash rate falls due to cold weather in Texas.
Key Takeaways
- The sudden freeze in Texas caused the Bitcoin hash rate to drop by 34% due to increased demand on the energy grid.
- Bitcoin miners in Texas, a major contributor to the U.S. hash rate, have scaled back operations in response to energy demands.
- Despite the temporary downturn, ERCOT predicts a return to normal grid conditions, suggesting a recovery in Bitcoin mining activity.
Bitcoin hashrate suffered a significant decline, falling 34%., following a sharp drop in temperatures in Texas. Decrease in cryptocurrency mining activity In line with the surge in demand In the state’s energy grid, Encourage miners to reduce work.
Temperatures dipped below freezing in many parts of Texas on January 14, a rare occurrence since the massive ice storm in February 2023.
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According to YCharts, the hash rate of the Bitcoin network is It plummeted from over 629 exahashes per second (EH/s) on January 11 to around 415 EH/s. Until January 15th. The hash rate showed signs of recovery, rising above 454 EH/s on January 16 as temperatures briefly warmed in Austin.
Texas accounts for approximately 29% of the U.S. Bitcoin hashrate. Key players in the cryptocurrency mining industry. This increase in awareness is This is mainly due to the relocation of several mining companies from China., following a state crackdown on cryptocurrency activity. Notable companies in Texas include Marathon Digital, Riot Platforms, Bitdeer, and Core Scientific.
Unlike the 2021 winter storms that caused widespread power outages and hazardous conditions, the recent cold snap’s impact on the Texas power grid has been less severe. Many mining companies have enrolled in a program with the Electric Reliability Council of Texas (ERCOT) to receive rewards for reducing electricity usage during periods of high demand.
Marathon Digital’s Charlie Schumacher had this to say about the situation:
Marathon, along with other Bitcoin miners, has been scaling back operations to support the Texas power grid and the state’s citizens battling sub-zero temperatures. This is how the system works. Bitcoin miners act as baseload, turning off during extreme weather events, making energy more abundant and cheaper for those who need it within minutes.
Additionally, a Riot spokesperson said:
Riot actively participates in the demand response program, enabling ERCOT to manage the company’s load when it needs assistance balancing the grid during difficult weather conditions.
Challenges to Texas’ energy infrastructure are not limited to winter. High demand during the summer also puts a strain on the system.
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