Bitcoin Hashrate Falls 40% Amid US Winter Storm, Mining Sees Major Disruptions

Bitcoin’s network computing power dropped to its lowest level in seven months this weekend after a severe winter storm...

Quick overview

  • Bitcoin's network computing power dropped to its lowest level in seven months due to a severe winter storm in the United States.
  • The storm caused a 40% decrease in Bitcoin's hashrate, with many miners temporarily shutting down operations to alleviate stress on the power grid.
  • US miners played a crucial role in maintaining grid stability during the storm by reducing output during peak demand.
  • The network's computing power partially recovered quickly, demonstrating the flexibility of Bitcoin mining operations.

Bitcoin’s network computing power dropped to its lowest level in seven months this weekend after a severe winter storm hit the United States. The storm brought snow, ice, and freezing temperatures to more than 36 states, leaving about one million people without power, according to AccuWeather. With the extreme weather and higher energy demand, many miners cut back their operations to reduce stress on the power grid.

According to CoinWarz, the network’s hashrate began to fall on Friday and dropped sharply over the weekend. By Sunday, Bitcoin’s computing power had fallen to about 663 exahashes per second (EH/s), which was more than a 40% decrease in two days. By Monday, the network had partly recovered to around 854 EH/s.

How Miners Support Grid Stability

Abundant Mines, an Oregon-based company, reported that nearly 40% of global Bitcoin mining capacity was temporarily offline due to the storm. Operators decided to cut output, which shows the flexibility of Bitcoin mining. The company said, “Mining operations can quickly shut down during grid stress and restart once conditions normalize.”

The United States leads global mining, accounting for about 38% of the total network hashrate. The Energy Information Administration reports there are at least 137 mining facilities nationwide. Experts say miners are taking a larger role in managing the electricity grid, especially through programs that help reduce peak demand.

https://www.coinwarz.com/mining/bitcoin/hashrate-chart?utm_source=chatgpt.com

Mining Can Help Support Power Supply

Mining operations can use surplus renewable energy and shut down during high demand, which helps keep power grids stable. Daniel Batten, a Bitcoin ESG researcher, said miners helped keep the Texas power grid steady during the storm. CryptoQuant analyst Julio Moreno noted that daily Bitcoin output at major US companies dropped sharply during the event.

Research shows that mining does not destabilize power grids. Instead, it can strengthen electricity systems and lower consumer costs by using energy flexibly. Peer-reviewed studies and operational data suggest that cutting mining output during extreme weather can improve overall grid efficiency.

Main Points:

  • Bitcoin’s hashrate fell by 40% over the weekend.
  • US miners helped keep the grid stable during the storm.
  • Network computing power recovered quickly once conditions improved.
ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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