Texas Bitcoin Mining Hit by Cold Weather and Power Cuts
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The U.S. leads Bitcoin mining with 36% of the global hashrate, while Texas contributes 17%, but extreme weather disrupted operations. Texas miners face power outages due to extreme cold, leading to Bitcoin’s first negative difficulty adjustment in four months. According to Luxor’s latest estimates, as of January 2025, the United States accounts for around 36% of the global Bitcoin mining hashrate. With Texas as one of the key contributors, this figure shows how the US keeps ruling the sector. Texas accounts for around 17% of global Bitcoin mining, making it the top hub in the U.S. Miners flock there for cheap energy, ample resources, and supportive regulations. But the mining sector has suffered greatly from the recent severe storms that have passed the area. Source: Hash Rate Index On January 26, 2025, freezing temperatures pushed Bitcoin miners in Texas to slow down or shut off operations, triggering the first drop in mining difficulty in four months. The Bitcoin network automatically adjusts this difficulty based on how much computing power is available. Source: Hash Rate Index Basically, the more miners there are, the harder mining becomes. But if enough drop out, the difficulty eases. This time, a winter storm forced many miners offline, lowering hashrate. So, the Bitcoin network adjusted difficulty to keep block times close to 10 minutes. Mining Gets Easier, but Weather Remains a Big Gamble For miners, this is two-edged sword. On the one hand, the declining difficulty makes mining simpler, so raising their odds of return. On the other hand, operational interruptions brought on by harsh weather might result in losses, particularly for businesses mostly dependent on consistent energy. For instance, Texas has had multiple instances of power disruptions in recent years because of severe storms. Since many miners depend on the state’s electricity supply, weather reliance…
Filed under: News - @ February 1, 2025 8:26 pm