The Bitcoin network hashrate bounced back to 170.60 EH/s from a weekly high of 276.40 EH/s after a temporary drop of 38% to 241.29 EH/s.
The Bitcoin network hash rate has returned to stable levels days after freezing temperatures in the United States strained the country’s power grid and the hash rate temporarily dropped.
In the days leading up to Christmas, freezing temperatures swept across the United States, leaving millions without power and killing at least 28 people.
Texas miners, who account for a significant portion of the country’s hash rate, have voluntarily scaled back operations to get power back on the grid — so residents can keep their homes warm.
The disruptions appear to have dampened Bitcoin’s hash rate, which typically ranges from 225 to 300 exahashes per second (EH/s). This fell to 170.60 EW/s on December 25th.
However, as of December 26, the hash rate has returned to 241.29 EH/s, according to data from CoinWarz’s hash rate mining calculator.
Bitcoin’s hash rate is calculated by measuring the number of hashes generated by bitcoin miners trying to solve the next block. It is considered a key metric for evaluating the security of the Bitcoin network.
Recent events prompted a controversial statement from FutureBit founder John Stefanop, who suggested that the drop in hash rate was due to the simultaneous closure of a number of “highly centralized mines” in Texas.
“I know it doesn’t change the fact that some big mines in Texas affect the entire network by 33%… everyone’s transactions are now being confirmed 30% slower because the hashrate isn’t entirely decentralized,” he said.
“If the hashrate had been distributed evenly around the world by tens of millions of small miners instead of a few tens of giant mines, this event would not even have registered on the network,” added Stefanop.
However, bitcoin bull Dan Held refuted Stefanop’s view of events, arguing that weather conditions do not imply centralized ownership or control.
According to the Cambridge Bitcoin Electricity Consumption Index, the United States accounts for 37.84% of the average monthly hash rate share. The country’s top four states for bitcoin mining are New York, Kentucky, Georgia and Texas, all of which experienced power outages due to the winter storm.
Dennis Porter, the CEO of bitcoin mining advocacy group Satoshi Action Fund, told his 127,400 Twitter followers on Dec. 25 that inclement weather, particularly in Texas, was causing 30% of bitcoin’s hash rate in the United States, the network said however, “continue”. work properly”.
Cheap energy and favorable mining regulations in Texas have fueled a bitcoin mining boom in Texas over the past few months, which is now home to some of the largest mining companies in the world.
These include Riot Blockchain, Argo, Bitdeer, Argo, Compute North, Genesis Digital Assets and Core Scientific – which recently received a $37.4 million bankruptcy loan to stay afloat.
See also: “There’s a lot less land to roam” – Why White Rock established off-grid mining in Texas
However, recent weather events have only added to the list of headaches for bitcoin miners.
According to recent data, the bear market has plagued bitcoin miners with $4 billion in debt.
Many big-name US-based mining companies have also filed for bankruptcy in recent months, while many other companies are reaching near-insurmountable debt ratios that require immediate restructuring.
The tragic weather events have not yet impacted Bitcoin’s price, which currently stands at $16,826 – down just 0.27 in the last 24 hours.