Cryptocurrency miners are feeling all the negative effects as a new heat wave hits Texas.
Summer in Texas doesn’t seem like a good place for cryptocurrency miners
Mining requires the use of specialized machinery and the consumption of large amounts of electricity, which generates heat.
In order to avoid overheating and to be able to operate at full capacity without problems, the surrounding environment should be Not too hot.
However, they consume additional energy on top of what mining machines already require. As a result, miners have shrinking profit margins and Due to soaring electricity prices.
And that’s exactly why many mining farms around the world choose to start operations in countries where temperatures are very cold, or at least persistent, throughout the year. Therefore, regions of Northern Europe such as Denmark, Norway and Finland, and regions of Canada, for example, are preferred.
Texas miners are forced to reduce operations
Recently, electricity demand has exceeded the symbolic level of 80,000 MW (megawatts).
Texas Electric Reliability Council (ERCOT), a U.S. organization that manages and monitors the power grid in Texas, has seen some records of electricity demanded, especially in July.
This emergency has sent ERCOT to local residents and businesses. reduce consumption as soon as possiblemore focused on mining farms.
In particular, cryptocurrency startup Argo Blockchain Bitcoin related mining activity July 19th. The company’s share price is down 60% from a year ago (YTD) and its net profit is down 91.84%.
Indeed, the heat wave Crypto Market Collapse Argo Blockchain is currently facing financial structure related issues.
Miners using renewable energy sources are more resilient to current conditions
Most crypto mining farms Promote operations with sustainable electricity It seems less likely to suffer from an overload of energy demand.
Frank HolmesCEO of Hive Blockchain Technology, explains:
“Bitcoin and Ethereum mining farms are designed to use 100% renewable energy (solar and wind) and will not disrupt the state’s power grid, even in Texas.”
What is happening now can be seen as a kind of ‘natural selection’ for the mining industry. Indeed, especially those running low-cost energy facilities through the use of Renewable energy saucethese sorts of events, or as they happened, are more likely to survive a significant drop in cryptocurrency prices.