US Winter Storm Causes Bitcoin Hashrate to Drop by 35%


Bitcoin’s hash rate dropped 35% in 24 hours as many miners in the US shut down their machines due to harsh winter storms hitting the country.

According to BTC.com, the hash rate dropped to 156 EH/s on December 24. In the 14 days before that, the average hash rate was 237 EH/s. Winter storms have already canceled thousands of flights in the US.

The effects of the storm, such as power outages, have also meant that bitcoin miners have had to shut down. More than 1.4 million homes and businesses are in the dark, the website tracking utility reports of power outages.

With energy suppliers urging the conservation of electricity, it is not surprising that bitcoin miners are shutting down as well. However, the hash rate appears to have picked up again and is now at 234.26 EH/s as of press time.

Texas miners voluntarily ceased operations

But the massive drop in hash rate has raised questions about how centralized bitcoin mining is and what it could mean for the network. Dennis Porter, CEO of Satoshi Act Fund noted That the network works as designed. He compared this to big tech companies like Amazon and Google, noting that if one-third of their data centers went offline, the impact would be very different.

Porter cited data center operator Lansium’s decision to cease operations, couple This was proof that miners are good for the grid.

Since China banned bitcoin mining in 2021, the US has played an increasingly important role in bitcoin mining. Many miners are located in Texas because of its cheap electricity and favorable regulations – these mining companies shut down when there is a huge increase in grid demand.

Meanwhile, FutureBit founder John Stefanop Said Hash rate is going offline due to highly centralized miners.

According to him, the bitcoin network is heavily dependent on weather and geological disruptions. Due to weather events in the US alone, transactions on the bitcoin network are now 30% slower. she added:

“If the hashrate had been distributed evenly around the world by 10 million small miners instead of a few dozen large ones, this event would not have even registered on the network.”

btc price performance

At press time, BTC is down 0.05% over the past 24-hours to $16,832. According to the available data, the leading digital asset has enjoyed a lot protection From retail investors who have found the current property price attractive. On the other hand, bitcoin whales are selling their holdings due to bear market conditions.

bitcoin price performance
Source: Coinmarketcap

disclaimer

BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.





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