Bitcoin miners in Texas are reported to be shutting down a significant number of their mining machines, raising significant questions. A recent report from Yahoo Finance revealed that this shutdown of Bitcoin mining machines is in response to Texas’ efforts to address an energy crisis that has plagued the state in recent years due to extreme weather conditions.
Texas, known for its cheap energy and Bitcoin-friendly regulations, has suddenly found itself in a controversial situation with an energy supply shortage.
The impact of this situation has forced major Bitcoin mining companies like Riot Platforms Inc. and Marathon Digital Holdings Inc. to temporarily deactivate their machines.
Lee Bratcher, the president of the Texas Blockchain Council, stated, “We have seen a decrease of over 90 percent in Bitcoin mining activity every day this week as energy supply becomes more limited.”
What is striking is that most of the remaining electricity in the state is currently being used to power office buildings and backup systems, while Bitcoin mining machines are largely inactive.
For context, the Bitcoin mining process requires a very high energy consumption, where specialized computers are used to validate blockchain transactions and, in return, they receive tokens. However, the challenges faced at this moment are unprecedented.
This recent shutdown of Bitcoin mining machines is reminiscent of last summer when Texas experienced another heatwave, resulting in a surge in electricity demand and mining shutdowns.
This situation further complicates the conditions for miners, with the drop in Bitcoin prices, increasing electricity costs, intensifying competition among mining companies, and changes in the Bitcoin blockchain code expected to significantly reduce mining revenue by 2024.
Nevertheless, some Bitcoin miners have managed to survive amid this chaos. They have achieved this by securing favorable long-term electricity contracts or participating in demand response programs offered by the Electric Reliability Council of Texas (ERCOT).
For example, Riot Platforms Inc. achieved a milestone by earning $31.7 million in electricity credits in August by selling the electricity they had purchased back to the grid.
However, Bitcoin miners still remain in a risky position as they depend on Texas’ ever-changing energy infrastructure within the dynamics of the crypto market.
The consequences of this situation could have long-term effects, not only on the Bitcoin mining industry but also on Texas’ reputation as a crypto-friendly destination.dap dunia kripto.
