Although many consider Texas to be an extremely hot region, the US state is recording subzero temperatures this week. For this reason, Bitcoin miners shut down their equipment.
The cold is not a problem for miners, on the contrary, it is great for helping to reduce the temperature of the machines. However, local miners have an agreement with the government.
When the weather is too hot or too cold, Texans should use their air conditioning equipment. For example, miners turn off their machines and leave energy to homes in the region.
This isn’t the first time this has happened. In 2022, mining companies were closed due to the heat wave in the region. Although it seems like a bad deal, these companies are paid for this by the government and can even make more money than they would from their activities, a controversial topic.
Texas Governor Praises Bitcoin Mining Activities in the Region
On social media, Texas Governor Greg Abbott noted that electricity demand in his state has reached new peaks. Citizens did not lose power because the miners turned off their equipment.
“Texas set three records for energy demand and supply this winter storm”Abbott responded on Twitter. “The ERCOT (Electric Reliability Council of Texas) power grid worked perfectly and never failed.”
“Not a single Texan has lost power because of the grid. This is thanks to renovations that increased energy generation, winterized the electrical grid and gave ERCOT more resources.”
Texas set three records for energy supply and demand this winter storm.
The ERCOT power grid performed flawlessly and never failed.
Not a single Texan lost power to the grid.
This is the result of reforms that added more energy generation, winterized the electric grid and gave ERCOT more tools. pic.twitter.com/aoIBbNWD7l
— Greg Abbott (@GregAbbott_TX) January 16, 2024
Also on Twitter, a director of the mining company Riot Platforms noted that wind energy farms suffer from weak winds. However, he noted that this had no impact on the price of energy for Texans.
“Texas natural gas plants have increased to 50 GW and bitcoin miners have scaled back to compensate for low wind generation. No blackouts and no scarcity pricing, big win for ERCOT!”
Natural gas plants in Texas have been increased to 50 GW #bitcoin miners were curtailed to compensate for low wind generation.
No blackouts and no scarcity pricing, huge win for ERCOT! pic.twitter.com/cCL47uGWPD
— Pierre Rochard (@BitcoinPierre) January 16, 2024
In the comments, a follower asked if there were any nuclear power projects in the region, which are not only considered a form of clean energy generation, but also do not rely on natural events. Your comment has not been responded to.
This Friday (19) and Saturday (20) temperatures in Texas could reach minus 1°C.
The closure of Bitcoin miners in Texas can be seen in Bitcoin’s hash rate
While Bitcoin’s hash rate has a lot of fluctuations, making it difficult to notice machine shutdowns, this chart shows a decline since January 11. From 630 EH/s the hash rate dropped to 434 EH/s this Wednesday (17).
Ultimately, such a partnership between mining companies and the Texas government is beneficial to the region. Indeed, it stimulates the generation and distribution of energy in the state and with the possibility of immediately closing and activating mining companies, it can leave the electricity grid with constant demand, avoiding surpluses.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
