Robert Steinadler, a year ago
A Bitcoin miner’s business usually depends on two things: electricity and ASICs. But there is more that has to be taken into the equation to run a successful mining venture. One thing is the local climate because the equipment will only work within certain limits regarding humidity or temperature. Of course, some of the effects of a harsh climate can be lessened by installing additional cooling or taking other measures that reduce the impact on the operations.
It seems that is not the case in Texas since miners are shutting down their farms for other reasons.
Texas is facing serious heat waves with temperatures of 40 degrees Celsius or more. This drives the demand for electricity up because households, as well as businesses, are in need of air conditioning. The heat is literally too much for the electricity grid because the demand is so high that outages have become more likely.
The Electric Reliability Council of Texas (ERCOT) appealed to the public to save energy by reducing consumption by turning off unnecessary devices. This appeal was also directed at businesses, including the mining industry.
In effect, miners have followed through and turned off their farms to save energy and secure its availability at all times.
But the support is not free of charge. Through a demand response agreement, some miners are compensated for their sacrifice. With the increased demand for electricity, the costs also increase, and while the Bitcoin price fell to $20.000 many miners are better off taking the deal and shutting it down at least for some time.
More importantly, this proves how flexible the mining industry is and how well it fits into the picture even during difficult times. Critics often point out that mining has a negative impact on society and the environment, but as the case in Texas proves this impact can also be positive.
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