The prolonged U.S. winter storm this recent week has not only created power outages but relatively increased the problem for the crypto industry. Due to which most of the U.S. based Bitcoin miners switched down their facilities. Thus the most commonly known cryptocurrency, Bitcoin, suffers from a decline in its hashrate by more than 38.8%.
Bitcoin Hashrate ‘Drop’ and ‘Rise’
The level of computing power used for mining and processing the transactions can be referred to as Bitcoin hashrate. According to Ycharts, Bitcoin hashrate came in at 156.46 exahashes per second on an evening before Christmas. As of now, the Bitcoin hashrate finds its recovery and once again comes back to regular levels.
According to Ycharts, “Bitcoin Network Hash Rate is at a current level of 247.87M, up from 156.46M yesterday and up from 177.15M one year ago. This is a change of 58.43% from yesterday and 39.92% from one year ago.”
Dennis Porter, the CEO & Co-Founder of a fund company named SatoshiActFund, said in his tweet on Christmas Day that “Over 30% of the Bitcoin hashrate has gone offline due to extreme weather in Texas and yet the global Bitcoin network continues to work perfectly.”
And later updated about the recovery of Bitcoin hashrate that plummeted 30% and recovered within 24 hours without any impact to the network.
Bitcoin Mining Firms
The Bitcoin users have liabilities of more than $4 Billion and require an immediate restructure to escape their unsustainable high debt levels.
On Dec. 23, 2022, the major Bitcoin miner, Core Scientific, filed for Chapter 11 bankruptcy and added that “Due to extreme cold weather sweeping across the eastern and southern half of the US, we will be participating in multiple power curtailments to help stabilize the electrical grid.”
Due to extreme cold weather sweeping across the eastern and southern half of the US, we will be participating in multiple power curtailments to help stabilize the electrical grid. BTC production is expected to decrease during this time.
Wrap up and keep warm everyone.
— Core Scientific (@Core_Scientific) December 23, 2022
Similarly, on Dec. 22, 2022, RIOT Blockchain, Inc., another Bitcoin mining firm announced about its closing, as it wrote “Due to the extreme weather conditions in #Texas, we will be closing down our Rockdale Facility to ensure the safety of our team members.”
Source: https://www.thecoinrepublic.com/2022/12/26/bitcoin-hashrate-drop-and-recovery-update-after-u-s-storm-hit-hard/