BTC Hashrate Fluctuates Amidst U.S. Winter Storm

After all the troubles it has caused for Bitcoin (BTC) miners, hashrates have returned to normal levels once again.

The Bitcoin hash rate first plummeted from 230 EH/s to 156 EH/s signifying almost a 40% decrease but as of a few hours ago, it retreated to almost 242 EH/s. This fluctuation follows the strong winter storm prevalent in the United States which left many homes and enterprises globally without power.

According to the hash rate mining calculator CoinWarz, as of today, the hash rate is 241.29 EH/s. FutureBit founder John Stefanop is of the opinion that the plunge in hash rate was caused by several “highly centralized mines” in Texas turning off at the same time.

“I know, does not change the fact that a few large mines in Texas affect the entire network to the tune of 33%…everyones transactions are now being confirmed 30% slower because the hashrate is not decentralized enough,” Stefanop said

Storm Destabilize Power Grid

The Arctic storm tampered with the electricity grids, blowing up power lines, and even ended up causing the death of about 22 individuals due to the drastically reduced temperature. At the same time, the BTC hashrate was getting affected. With the outage, many Bitcoin miners became distracted, some others ended up closing down their operations.

As soon as the warning of the storm was made public by the National Weather Service, many miners suspended their activities.

One such company is the U.S.-headquartered Riot Blockchain which announced that its Rockdale facility in Texas will be shut down. Similarly, Riot Blockchain underwent the same action, suspending Bitcoin mining in August when there was a heat wave in Texas.

Core Scientific with an ongoing bankruptcy proceeding has equally pledged to boost the power infrastructure by adhering to energy restrictions and regulations. Notably, the five years old Texas-based BTC miner had predicted a decline in Bitcoin production. 

“Due to extreme cold weather sweeping across the eastern and southern half of the US, we will be participating in multiple power curtailments to help stabilize the electrical grid. BTC production is expected to decrease during this time. Wrap up and keep warm everyone,” Core Scientific stated.

Collectively, these mining facilities sought ways to return power to the grid, especially for local homes and residents.