Bitcoin Hash Rate Plunges Ahead of Anticipated Halving Event – Here’s the Latest
The Bitcoin (BTC) hash rate experienced a significant drop of 34% as a result of a sudden freeze in Texas, causing some miners to scale back their operations due to the strain on the state’s energy grid.
The development comes at a crucial time, with the anticipated halving event, where the number of generated BTC rewards per block is reduced by 50%, drawing closer.
Starting on January 14, temperatures in various parts of Texas plummeted below freezing, marking one of the first severe cold spells since a massive ice storm in February 2023.
Data from YCharts revealedthat the total Bitcoin network hash rate declined from over 629 exahashes per second (EH/s) on January 11 to approximately 415 EH/s on January 15, representing a 34% decrease.
A Bitcoin miner in Texas switched off machines to support the grid during extreme cold weather.
Bitcoin mining is the only industry that can respond immediately in times of emergency, while being a "buyer of last resort" to improve viability of energy projects. pic.twitter.com/mJQMc0Isfm
— Bitcoin Archive (@BTC_Archive) January 18, 2024
However, the hash rate experienced a slight recovery, reaching over 454 EH/s on January 16 when temperatures in Austin briefly rose above freezing during the day.
In 2021 Texas faced record-low temperatures and a sudden winter storm resulting in numerous power outages and hazardous road conditions. This resulted in a state-wide power crisis. However, there were fewer reports of significant disruptions to the state’s power grid this January.
Texas has emerged as a significant hub for Bitcoin mining, accounting for approximately 29% of the Bitcoin hash rate in the United States.
Many mining companies relocated to the state from China following the Chinese
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