Robert Steinadler, 5 months ago

Too hot for Bitcoin – Why Texas miners are shutting down

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 electricity grid is struggling

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.

Not free of charge

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

Featured articles
Four trading strategies for crypto
Bitcoin and Ethereum: what are the differences?
What determines the Bitcoin price?
Related articles
New Bitcoin mining report: 52% zero-emission

Dec 02, 2022

A researcher and former climate activist has established a new methodology to determine the percentage of the Bitcoin mining energy that comes from renewable sources. By including so-called off-grid mining, he estimates Bitcoin's total energy generation at 52% from zero-emission sources.

Trade anytime, anywhere

Boost your trading impact and reaction time in over 80+ cryptocurrencies via instant access to your portfolio with the LiteBit app.

  • 2525 Ventures B.V.
  • 3014 DA Rotterdam
  • The Netherlands
More info
  • About LiteBit
  • Careers
  • Business account
  • Support
  • Sell
  • News
  • Education
Subscribe for updates

Sign up to stay informed via our email updates

Subscribe
Explore popular coins
© 2022 LiteBit - All rights reserved