Bitcoin’s hashrate shrunk on December 25 and set a new record for the lowest hashrate in the last three months, Although while writing this article, the hashrate is back to its earlier position.
On December 25, 2022, the hashrate of the Bitcoin network decreased and came down to 170.60EH/s. This occurred because of snowfall which froze the United States and put a strain on the nation’s electricity grid leading to a temporary drop in hashrate.
CoinWarz hashrate mining calculator data says that a heavy decline is seen in Bitcoin mining hashrate due to extreme climate conditions in the United States. However, it is important to note that the declined hashrate climbed back to 241.29 EH/s.
A particular statement by John Stefanop, founder of FutureBit when quoted that the reason behind declining hashrate is the number of “highly centralized mines” turned off at similar periods.
He also added, “I know, does not change the fact that a few large mines in Texas affect the entire network to the tune of 33%… everyone’s transactions are now being confirmed 30% slower because the hashrate is not decentralized enough.”
Stefanop noted, “If hashrate were distributed evenly around the world by 10’s of millions of small miners instead of a few dozen massive mines, this event would not have even registered on the network.”
Cambridge Bitcoin Electricity Consumption Index states that the United States accounts for around 37.84% of the average monthly hashrate share. Nevertheless, New York, Kentucky, Georgia and Texas all of these states had experienced power outages due to the winter storm.
Dennis Porter, Chief Executive Officer of Bitcoin mining advocacy group Satoshi Action, told his followers that “while the inclement weather specifically in Texas has affected 30% of Bitcoin hashrate alone.
On September 29, 2022, Dennis Porter shared his thoughts in the Tweet. His tweet clearly showed his support for Bitcoin, whereas he also warned the Ethereum Community and the Ethereum Founder, Vitalik Buterin.
According to several media outlets, it is noted that climate conditions in the United States have been quite dangerous for the last few days and are troubling the public because of the Monster Storm that hit the nation.
As per legitimate information, more than twenty-eight people have died in this disastrous situation, but CNBC reported that around twenty-six common citizens lost their lives in the hail storm. The natural calamity has also affected properties worth millions, including private properties.
Erie County Executive Mark Poloncarz noted on Twitter, “This is not the Christmas any of us hoped for nor expected, but try to have as merry a Christmas as possible today.”
Over a million of the common public were facing power shortages and other difficulties because of the worst weather conditions in the United States.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/12/26/bitcoin-crypto-miners-back-on-track-hashrate-on-recovery/