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Recently, there has been a significant drop in Bitcoin's network hash rate. According to data from Blockchain.com, it has fallen from about 600 EH/s last Friday to 440 EH/s as of yesterday, representing a staggering 25% decline. This is mainly attributed to severe cold weather conditions in Texas, USA, leading to local power authorities, ERCOT, implementing power restrictions from the 14th to the 17th to cope with potential surges in electricity demand due to extreme cold weather.
The decline in hash rate is primarily caused by Foundry USA Pool, with miner clients reducing hash rate by up to 75 EH/s. As of September, over 28% of the hash rate connected to Foundry Pool was located in Texas, making this hash rate drop closely related to the power restrictions in Texas.
Data from Mining Pool Stats shows a significant decrease in hash rate for Foundry USA Pool and Antpool since Sunday, with these two major Bitcoin mining pools contributing to over 70% of the overall network hash rate decline.
As of now, with ERCOT announcing the end of weather alerts early today, the hash rates for Foundry USA Pool and Antpool have recovered to 146.54 EH/s and 125 EH/s, respectively.
This incident not only highlights the impact of local policies on Bitcoin mining activities but also underscores the unique advantage of Bitcoin mining activities in being able to facilitate "convenient interruption operations." Charlie Schumacher, VP of Corporate Communications at Marathon Digital, one of the three major mining enterprises in North America affected, stated that Bitcoin mining machines serve as a technological solution for the energy industry. In Texas, they provide stable base-load energy and can adjust output within minutes to release energy for other users in emergency situations, as witnessed in recent days.
It's worth noting that Texas has rapidly become a new hub for Bitcoin mining since China cracked down on the mining industry in 2021. Miners believe that their mining activities benefit the Texas power grid because their flexible use of electricity can strengthen the state's grid by reducing power demand during peak periods and increasing power supply during off-peak periods.
Texas, with its inexpensive electricity, grid incentive policies, and unregulated energy market, has attracted several companies, including Marathon Digital, Riot Platforms, and Iris Energy, contributing to the growth of mining facilities in the state. According to Foundry's September report, U.S. Bitcoin miners using its Texas pool account for 28.5% of the total U.S. hash rate, up from 8.4% in 2021, making it the highest among all states in the U.S.
The Bitcoin mining industry in Texas has actively participated in managing power demand. For instance, Riot Platforms obtained $31.7 million in electricity and demand response credits from ERCOT in August as an incentive for reducing power consumption by over 95% during peak summer temperatures. Iris Energy also received a $2.3 million energy credit in the same month for voluntarily reducing power usage. |
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Post time 30-1-2024 21:00:13