Energy crises in Texas: Bitcoin (BTC) mining in its death throes?

Texas can say goodbye to its ambition to become a global hub for bitcoin mining. There energy crisis which is raging there at the moment has not spared the sector. Seeing the latest news, many of the Texan BTC miners have decided to reduce, or even suspend, their activities. Big plan !

In short

  • A monster energy crisis is hitting Texas right now
  • Bitcoin miners had to stop their activities momentarily

Bitcoin mining down in Texas

Rich with a unique energy potentialsupported by immeasurable natural assets, Texas authorities did not hesitate to issue licenses to local bitcoin miners. The rush towards this new profitable activity has even pushed them to display big ambitions: make Texas a reference in BTC mining.

Local leaders even went so far as to open their doors wide when crypto miners asked them for collaboration, or even regulatory support.

Forced shutdown of bitcoin (BTC) mining in Texas

Texas bitcoin miners, embroiled in controversy over their energy-intensive operations, shut down most of their machines as the state is grappling with a power crisis. »

L’article attached by Bloomberg This tweet talks about bad news regarding the bitcoin mining sector in Texas. Indeed, local BTC miners have decided to stop their activities due to the energy crisis currently affecting the region.

There ” emergency situation », favored by extreme weather conditions, pushed the Texas administration to restrict access to electricity. Enough to affect any activity related to bitcoin mining on site.

We have regularly observed a 90% reduction in bitcoin mining every day for this week when food conditions have tightened. The electricity that is not cut off is mainly intended for the office buildings and backup systems that are on site, not the machines themselves “, explains Lee Bratcher, president of the Texas Blockchain Council.

And since the bitcoin mining process requires a lot of energy, an argument that crypto-skeptics keep reiterating, “ all industrial-scale bitcoin miners shut down their machines during the power outage “, he continued.

Texas, from heaven to hell for bitcoin miners?

Certainly, Bitcoin mining can survive the bear market, but it’s not that resilient. Heatwaves, snowstorms and other climatic hazards often forced BTC miners in Texas to close their doors temporarily.

According to“The Lone Star State” suffers from a major handicap: its fragile electricity network. Last July, journalist Denise Ramos reported temperatures at “ unprecedented levels for three consecutive weeks “. At this time, Texas claimed the title ofHottest state on earth.

However, the winter storm of early 2021 has already worried several BTC miners in Texas. Between February 8 and 20 of that same year, the 2021 Federal Energy Regulatory Commission identified 4,124 outages or failures of Texas electricity production units.

Nearly 69% of Texas households no longer had access to electricity because of this storm. And approximately 210 people lost their lives. Obviously, the bitcoin mining sector has been affected.

ERCOT had no choice at the time but to request that residents reduce their energy consumption.

We’re asking Texans to take simple, safe steps to reduce their energy use during this time “, chanted Bill Magness, president of ERCOT.

Currently, intense heat waves are affecting Texas. In this American state, power plants are experiencing major problems: they depend too much on natural gas and at the same time, they are old. Texan politicians would do better to accelerate the ecological transition to avoid the repetition of such incidents in the future. Otherwise, no one would want to believe that bitcoin as well as BTC mining activities do not harm the environment.

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