Bitcoin miners in Texas set to power down as the State grid struggles with the summer heat. The price of crypto may be dropping as it is, but one thing is for sure the temperature is going all the way up.
Bitcoin Miners in Texas Set To Power Down As State Grid Struggles With Summer Heat
Normally, the setup of crypto mining takes a whole lot of energy to run. And currently, the state of Texas is not so big on energy. The power grid operator of the state has asked businesses in the region to conserve energy as the heat wave is pushing the limits on just how much power is available.
The electric reliability council of Texas on Monday asked residents of Texas to cut down their consumption of power in order to avoid rolling blackouts all through the state. Crypto mining companies whose operations are in Texas followed suit even though the measure means a drop in profits as per Bloomberg.
What the Electric Reliability Council of Texas Has To Say
ERCOT cites that there are not many requirements for mining companies to conserve energy. But the agency, however, hopes that businesses answer positively to its request.
The energy needed for mining cryptocurrency is very high and crypto mining companies have warehouses that are filled with computers which is also known as mining rigs that are running nonstop in order to complete calculations that are complicated and are required for transactions. A rig that successfully completes the computation needed for bitcoin Blockchain for instance can receive up to 6.2 Bitcoins or close to $123,000 at recent prices.
“Currently, 100% of the machines located in Texas have been powered off to provide support for the ERCOT grid,” Mike Levitt who is the CEO of Core Scientific told revealed to Bloomberg.
Crypto mining companies in Texas are expected by ERCOT to need 6 gigawatts of power by the middle of 2023 and that is just about enough energy that is needed to power the whole city of Houston.
The Prices of Bitcoin Have Been On Fall For The Most Part Of 2022
The prices of bitcoin as well as that of many other Cryptocurrencies have been on a steady decline for most of 2022. And just last November, one bitcoin was valued at over $67,000. But presently, the value has significantly dropped falling below the $18,000 mark just last month.
A combination of a downturn in the economy worldwide and record inflation made holders of Cryptocurrencies sell off their digital coins and in the process making their values drop. Regulators and legislators in the US are also tracking certain practices in regards to cryptocurrency while various states are also looking to stop reduce or completely stop the mining of crypto.