Robert Steinadler, 8 months 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.
Read more: Miner Riot Blockchain got paid 9.8 million dollars for turning off machines
Mar 21, 2023
It's nice for every BTC hodler to see the price go up. But for Bitcoin miners the recent pump - in fact, one of the best weeks in Bitcoin's history - is more than just fun: it's existential. Bear market prices and high electricity costs have hurt them hard in the past 12 months. Finally, the tides seem to be turning.
Mar 20, 2023
Balaji Srinivasan, the former CTO of Coinbase and author of The Network State, has made a bet of 1 BTC and $1 million on whether the US will experience hyperinflation. Only if BTC will reach $1 million by June 17, Balaji will win this outrageous bet. What has he been smoking?
Mar 14, 2023
After a tumultuous weekend, in which the American government had to prevent a bank run on regional banks, markets have had some time to digest the developments, including some new economic data. What to expect - and why the recent pump?
Mar 13, 2023
Bitcoin was born as an idea in 2008 when its whitepaper got published. Only a few months later, on January 3rd, 2009 the so-called Genesis block was mined and the Bitcoin network started working. Only 14 years later the United States and the world are facing a very similar situation to the one we saw between 2007 and 2009. Some banks acted irresponsibly and without a bailout, there might be a contagion effect that kicks in. Many people believed that bailouts are out of the question after the failure of Lehman Brothers.
Sign up to stay informed via our email updates