Bitcoin mining has taken a severe hit in the state of Texas as it grapples with extreme weather conditions. A drop in temperature has resulted in mining centers not being able to use enough power for a significant level of hash rate.
Texas sees Bitcoin mining slow down amid power crunch
The hash rate of Bitcoin has significantly decreased due to a sudden freeze in Texas, forcing miners there to reduce their activity to maintain the state’s electricity infrastructure.
According to a report by CoinMarketCap, the total hash rate of the Bitcoin network decreased by 34% from January 11 to January 15. This decrease went from over 629 exahashes per second (EH/s) on January 11 to about 415 EH/s on January 15. On January 16, the hash rate partially rebounded to over 454 EH/s when Austin’s temperature momentarily reached above freezing.
Generally, the hash rate involves a power supply in the range of 1,449 kWh per Bitcoin transaction to 72,000 GW. The network for Bitcoin uses about 128 GWh per day to generate 900 bitcoins.
With Texas’ temperature dipping to its lowest last week, companies had to take a step back on electricity usage to comply with the state’s limited resources.
Marathon, Riot confirms reducing activities
Companies involved in mining, such as Riot Platforms and Marathon Digital, acknowledged that they reduced their activities to assist the Texas power system and its residents during the cold snap.
The Texas freeze’s effect on the Bitcoin hash rate decline emphasizes the possible effects of severe weather on the Bitcoin mining sector.
Texas’ slumped output could halt the overall Bitcoin chain
Texas is one of the most Bitcoin-friendly states in the US. It also boasts around 29% of the US Bitcoin hash rate. Many mining companies have moved there in the wake of China’s crackdown on cryptocurrency mining.
The state passed the Texas Bitcoin Bill in the House of Representatives on May 11. The bill was later also approved by the State Senate early on May 27. The state’s commercial laws recognize Bitcoin and other digital assets making it a Bitcoin heaven in the US.
Texas is home to several Bitcoin mining companies, including Core Scientific, Bitdeer, Riot Platforms, and Marathon Digital. However, due to bad weather conditions, a lot of networks have been offline and unable to mine in the past week.
With Texas’ slumped output, the overall mining network could slow down, resulting in halted activity. Nevertheless, better weather conditions in the upcoming week will be a crucial factor for resuming Bitcoin mining in the region.
