The total computing power, ie hash ratefrom the Bitcoin (BTC) network recently plummeted by nearly 40%. This has everything to do with the exceptionally violent winter storm that is currently plaguing the United States. Large miners are scaling down their operations to reduce the load on the energy grid.
Bitcoin computing power plummets
According to Glassnode the total hash rate dropped from 252.98 exahashes per second (EH/s) on December 21 to 156.36 EH/s on December 24. That’s the biggest drop in hash rate since its inception from June.
A falling hash rate is generally not good for the Bitcoin network. The more computing power is allocated to the network, the more secure the network is. This means that more raw computer power must be used to validate transactions. The higher the hash rate, the more difficult it is to outsmart the Bitcoin network.
Nevertheless, Bitcoin users need not worry just yet. The hash rate is still so high that ‘breaking into’ the Bitcoin network is virtually impossible, even for malicious parties with the fastest computers in the world.
Bitcoin miners are scaling back
The large Riot Blockchain, among others, has announced that they are temporarily taking a step back. Their bitcoin mining plants in Texas will be temporarily closed “to ensure the safety of workers.”
Due to the extreme weather conditions #Texas, we will be closing down our Rockdale Facility to ensure the safety of our team members. Stay tuned for updates.
— Riot Blockchain Inc. (@RiotBlockchain) December 21, 2022
Also the huge Core Scientific, which recently also their filed for bankruptcy to court, has decided to temporarily scale back their activities. They do this to ensure that the energy network around their installations remains capable of providing electricity to private individuals in their homes.
“Due to the extremely cold weather in the eastern and southern US, we will participate in multiple power cuts to stabilize the power grid. BTC production is expected to decline during this period.”
Fortunately, the 1-to-1 drop in the hash rate is due to the storm raging across the United States. It is therefore expected that the hash rate will recover once the storm has passed.