Bitcoin miners in the US are still suffering from the effects of the American winter
CriptoFácil – Mining was recently impacted by a winter storm in Texas, which resulted in the interruption of electricity supply to many BTC miners in the state.
CriptoFácil reported the case in December and showed how it was impacting the hashrate of the BTC network and, at the time, miners already weakened by the price that plummeted with the recent bankruptcy of FTX.
Riot Blockchain (NASDAQ:), one of the largest Bitcoin mining companies in the United States, recently announced that many of its mining equipment were still offline due to the power outage.
Bitcoin mining is a process that involves solving complex equations using powerful computers. These equations are used to validate transactions on the Bitcoin network, which helps maintain the security and integrity of the cryptocurrency.
Bitcoin mining is an energy intensive process as computers need to be on 24/7. Therefore, any downtime on computers connected to the network means less income for miners.
Bitcoin Mining
The winter storm in Texas resulted in an extended power outage, which directly affected Bitcoin mining. Many Bitcoin miners in the state were without power for days, which resulted in their mining activities being halted.
Riot Blockchain estimates that around 40% of its mining capacity was affected by the winter storm.
The interruption of Bitcoin mining in Texas could have a significant impact on the Bitcoin network. With fewer miners validating transactions on the network, the processing speed of transactions could be affected, which could result in delays for cryptocurrency users.
Also, mining disruption can affect Bitcoin supply and demand, which can result in price fluctuations. However, this can also benefit miners who remain connected to the network as the mining difficulty can drop and it becomes ‘easier’ to earn bitcoins in the mining process.
Bitcoin mining is a highly geographically concentrated activity, with large mining centers located in regions of the world where there is an excess of renewable energy, such as China, Russia, Paraguay and Norway.
By CriptoFacil