Bitcoin Mining Jerked to a Halt in Texas Hub Amid Heat Wave Predictions, Power Outage Possibilities

The decision of BTC miners to halt their operations amid extreme heat conditions is also influenced by Texas’ electricity provider, ERCOT.

By Radhika Parashar | Updated: 13 July 2022 15:05 IST

Bitcoin Mining Jerked to a Halt in Texas Hub Amid Heat Wave Predictions, Power Outage Possibilities

Photo Credit: Unsplash/ Dmitry Demidko

Bitcoin mining is already infamous for gobbling up loads of electricity

Highlights

Majority BTC mining machines turned off in Texas
Riot Blockchain and Agro Blockchain manage hi-tech computing machines
Texas electricity board also supports halt in BTC mining

Majority Bitcoin mining operations in Texas have been halted in Texas, US after forecasts of severe heat waves have made it to the headlines there. In order to maintain an adequate temperature in mining farms, electricity consumption in the region could shoot up causing hinderance in the power supply to other residents of the state. Hence, majority BTC mining companies in Texas have turned off their machines. Bitcoin mining is already infamous for gobbling up loads of electricity and disrupting power supply in nearby regions.

Bitcoin mining players in Texas like Riot Blockchain and Agro Blockchain manage several power-intensive computing machines, that are used by miners to solve complex algorithms and mine Bitcoins.

“Over 1,000 megawatts worth of Bitcoin mining load were turned off to conserve energy for the state's network. This represents nearly all industrial scale Bitcoin mining load in Texas and allows for over 1 percent of total grid capacity to be pushed back onto the grid for retail and commercial use,” a Bloomberg report quoted Lee Bratcher as saying. Bratcher is the President of the Texas Blockchain Association.

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The decision of BTC miners to halt their operations amid extreme heat conditions is also influenced by Texas' electricity provider, the Electric Reliability Council of Texas (ERCOT).

As per a report by CryptoPotato, ERCOT, that oversees electricity consumption of crypto miners, also felt it was necessary to give BTC mining operations a rest for the time being.

Bitcoin mining in Texas consumes 1,000 megawatts (MW) of electricity, according to the Texas Blockchain Council.

For reference: on an average day, the entire city of New York uses 8,000 MW. (source: https://t.co/XHC7lGnkjG) https://t.co/sXJSFrHbxU
— dell cameron (@dellcam) July 12, 2022

Miners are shutting down in Texas today to help maintain grid stability during a heat wave. #Bitcoin mining has become an important part of the grid in Texas. Soon it will be an integral piece of grid infrastructure all over the world.
— Dennis Porter (@Dennis_Porter_) July 11, 2022

Texas emerged as a Bitcoin mining hub after the Chinese government criminalised all crypto-related activities earlier this year. Excessive power consumption in crypto mining was one of the important reasons why China took the drastic measure.

The state offers a 10-year tax abatement, sales tax credits, and state-sponsored workforce training to crypto miners, attracting more of them, a report by Data Center Dynamics said.

At present, two of the world's largest cryptocurrency mines are under construction in Texas.

The Mayor of Rockdale, Texas, John King, says he even “mines #bitcoin at his home” and welcomes companies to the #Bitcoin friendly city. :us: pic.twitter.com/JBidQ98q7c
— Documenting Bitcoin :page_facing_up: (@DocumentingBTC) July 9, 2021

Texas is poised to become the #Bitcoin mining capital of the U.S. as a result of its deregulated electricity landscape, cheap energy costs, and welcoming lawmakers. :electric_plug::zap:

The #Whinstone mine in Rockdale, TX (pictured) could be capable of producing 500+ Bitcoins per month! pic.twitter.com/XiVMlPBDX9
— Sophia Zaller (@sophiamzaller) July 9, 2021

Now that Texas miners have paused mining Bitcoin, blocks on the blockchain that record each transaction may take longer to get validated, causing the Bitcoin system to experience some snags.

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Further reading: Cryptocurrency, Bitcoin Mining, BTC, Texas

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More