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Bitcoin hash rate drops 30% to 188.11 EH/s – Is the BTC network in danger?

John KumiBy 0Edited by John Kiguru 26. December 20223 Mins Read
  • Fourteen days ago, the average Bitcoin hashrate was about 237 EH/s.
  • As of December 24, the hashrate fell to 156 EH/s according to BTC.com.

A harsh winter storm in the United States has had a dramatic impact on the Bitcoin hashrate which fell by 35 percent in 24 hours. CNN reported that the storm has killed at least 22 people and tore down power lines, causing about 315,000 homes and businesses without power on Christmas eve. A website tracking utility report PowerOutage, also estimates that 1.4 million homes and businesses are in the dark. In addition, thousands of flights have been canceled to this effect. 

Fourteen days ago, the average Bitcoin hashrate was about 237 EH/s. As of December 24, the hashrate fell to 156 EH/s according to BTC.com. This means that Bitcoin miners were left with no option but to shut down. Currently, things are picking up with the hashrate sitting at 229.83 EH/s as of press time. The significant fall of the hashrate raised several questions concerning the centralized nature of Bitcoin mining. 

Dennis Porter compared the Bitcoin network to Amazon and Google

Dennis Porter, CEO of Satoshi Act Fund lauded how the global Bitcoin network worked perfectly fine despite the shutdown of miners and compared this with tech giants such as Amazon and Google. 

Over 30% of the #Bitcoin hashrate has gone offline due to extreme weather in Texas and yet the global #Bitcoin network continues to work perfectly. Now imagine if Amazon or Google tried turning off 1/3rd of their data centers.

Dennis Porter also referred to data center operator lancium’s decision to shut down its operation.

Bitcoin miners have once again voluntarily shut off power during an extreme weather event in Texas.Bitcoin miners are good for the grid.

FutureBit founder John Stefanopoulos has also observed that highly centralized miners contributed to the hash rate going offline. According to him, weather and geological disruptions alone slowing down transactions by 30 percent on the Bitcoin network is enough to conclude that the network is too dependent on such events. 

The US has played a very important role in Bitcoin mining since China started cracking down on mining infrastructures in 2021. Texas has several of these miners due to its favorable regulations and cheap power. However, they tend to shut down when there is a significant increase in grid demand. This poses a serious threat to the Bitcoin network which is supposed to be independent of such external circumstances. 

Stefanopoulos stated:

If hashrate was distributed evenly around the world by 10’s of millions of small miners instead of a few dozen massive mines, this event would not have even registered on the network.

The storm is said to be hitting the Upper Midwest and interior Northeast with serious snow and blizzard conditions. 

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This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.

John is a seasoned cryptocurrency and blockchain writer and researcher, boasting an extensive track record of years immersed in the ever-evolving digital frontier. With a profound interest in the dynamic landscape of emerging startups, tokens, and the intricate interplay of demand and supply within the crypto realm, John brings a wealth of knowledge to the table. His academic background is marked by a Bachelor's degree in Geography and Economics, a unique blend that has equipped him with a multifaceted perspective. This diverse educational foundation allows John to dissect the geographical and economic factors influencing the cryptocurrency market, offering insights that go beyond the surface. John's dedication to the crypto and blockchain space is not merely professional but also personal, as he possesses a genuine passion for the technologies that underpin this revolutionary industry. With his astute research skills and commitment to staying at the forefront of industry trends, John is a trusted voice in the world of cryptocurrencies, helping readers navigate the complex and rapidly changing terrain of digital assets and blockchain innovation. John Kiguru is an accomplished editor with a strong affinity for all things blockchain and crypto. Leveraging his editorial expertise, he brings clarity and coherence to complex topics within the decentralized technology sphere. With a meticulous approach, John refines and enhances content, ensuring that each piece resonates with the audience. John earned his Bachelor's degree in Business, Management, Marketing, and Related Support Services from the University of Nairobi. His academic background enriches his ability to grasp and communicate intricate concepts within the blockchain and cryptocurrency space. Business Email: info@crypto-news-flash.com Phone: +49 160 92211628

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