SHORT TAKE
- The Bitcoin network's hashrate decreased from 230 EH/s to 155 EH/s.
- The continuing snowfall has presented a distinct set of difficulties for US bitcoin miners.
Many bitcoin miners have had to shut down as a result of the ongoing blizzard in the United States.
This holiday weekend, an Arctic blast and winter storm that tore down power lines with winds and heavy snow and plunged temperatures dangerously low caused thousands of homes and businesses across to lose power, according to CNN. At least 22 people were killed as a result.
The hashrate, which measures how much computer power is being used to process transactions, was drastically lowering, causing a massive upheaval on the Bitcoin network. According to data from CoinMetrics, the hashrate has decreased by more than 30% just since Saturday, going from 230 EH/s to 155 EH/s. Large-scale mining operations were halted as a result of the National Weather Service's warning about the upcoming Arctic blast.
Due to severe weather, the mining company Riot Blockchain announced it was closing its Rockdale site in Texas. Similar actions were taken by other miners. Bitcoin output is expected to diminish during this time, Core Scientific, which recently filed for bankruptcy protection, announced on Twitter. Core Scientific stated it will be "engaging in numerous power curtailments to help maintain the electrical grid."
The winter storm may cause some ups and downs this weekend, said Neil Galloway, director of mining operations at Compass Mining, who also noted that its Texas locations were offline. "People can heat their houses and cook since your miner is down."
For American bitcoin miners, the weather event has brought forth a distinctive set of difficulties. They rely on reliable electricity to run their operations, and any extended power outages have a negative impact on their capacity to carry out mining operations. According to the Cambridge Centre for Alternative Finance, the U.S. generates at least 37% of the world's Bitcoin hashrate.
