Bitcoin Mining Collapsed Due To Snow Storms In America

The enormous winter storm in North America not only caused massive problems for Christmas trip to families. The hash rate in the Bitcoin network also collapsed massively at times because many mining systems had to be shut down.

The hash rate in the Bitcoin network collapsed by almost 40 percent at times over the Christmas weekend. This is the sharpest drop recorded in a long time. Part of this can certainly also be attributed to other factors, but the massive downward swing coincides exactly with the extreme blizzard event that has been keeping the USA in check for days.

Temperatures plummeted, and there were heavy snowfalls and storms. Since overhead lines are often still responsible for power transmission in the USA, many defects caused major problems for energy suppliers. In addition, of course, where the power supply worked, demand was particularly high.

Big miners are going down

Last Wednesday, 253.88 exahashes per second were registered in the Bitcoin network. It had then dropped to a low of 155.28 exahashes per second on Saturday. Bitcoin miner Core Scientific has announced that it is participating in several shutdowns that are necessary to stabilize the power grid. However, this is unlikely to have happened voluntarily – after all, the company is fighting for its survival due to the massive fall in the value of cryptocurrencies and has already applied for creditor protection.

And the Texas-based Riot Blockchain also announced on Thursday that it would shut down the facilities due to the upcoming weather conditions. The Texans are still feeling the shock of a year ago when the southern state, in which there are hardly any insulated and sensibly heated houses, was hit by a severe frost period.