The decision of BTC miners to halt their operations amid extreme heat conditions is also influenced by Texas’ electricity provider, ERCOT.
Bitcoin mining is already infamous for gobbling up loads of electricity
Photo Credit: Unsplash/ Dmitry Demidko
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.
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.
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.
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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