Miners in Texas are in grave danger due to the heat wave.

For bitcoin miners, the Texas heat doesn’t seem like the best environment.
Because of the usage of specialized equipment, mining uses a lot of power and generates heat.

The setting shouldn’t be too hot for them to function without discomfort and to prevent being overheated.

If this occurs, miners will need to use extra cooling equipment, such fans and air conditioners, to sufficiently cool ASICs and graphics cards.

However, they use more energy on top of what the mining equipment currently use. As a consequence of increased power prices, miners will see a decrease in their profit margins.

And for exactly this reason, a large number of mining farms throughout the globe decide to establish their operations in nations with very low temperatures, or at least temperatures that are consistent throughout the year. As a result, places like Canada and Northern Europe’s Denmark, Norway, and Finland are preferred.

Miners will be able to reduce their expenditures for energy needs in this manner, which will boost their profitability.

Texas miners must scale down their activities
Demand for electricity just surpassed the symbolic threshold of 80,000 MW (megawatts).

The quantity of energy consumed has reached many records, particularly in July, according to the Electric Reliability Council of Texas (ERCOT), a US body that oversees and operates the Texas power system.

ERCOT has requested that area companies and individuals cut their usage as quickly as possible, with an emphasis on mining farms, due to the emergency situation.

Argo Blockchain, a cryptocurrency mining business, was forced to drastically cut down on its Bitcoin mining on July 19. The company’s net income is down 91.84 percent while its share price is down 60 percent from the same period last year (YTD).

Certainly, the firm Argo Blockchain, which currently has issues linked to its financial structure, was not helped by either the heat wave or the fall of the cryptocurrency market.

Texas has seen a scenario similar to this before. In reality, ERCOT foresaw a potential energy shortage four months earlier and asked miners to acquire authorization to connect to the state’s power grid.

Miners that use renewable energy sources can withstand the present scenario better.

Sustainable energy mining operations are better equipped to endure adverse situations.
The majority of cryptocurrency mining farms that run on renewable electricity seem to be less affected by the excess of energy demand.

Hive Blockchain Technology’s CEO, Franck Holmes, says that:

“Bitcoin and Ethereum mining farms are intended to utilise 100% sustainable energy (solar and wind) which, even in Texas, will not interfere with the state’s power system.”

The current state of the mining business might be thought of as a kind of “natural selection.” Indeed, those that run low-cost energy facilities, particularly those that use renewable energy sources, have a higher chance of surviving such occurrences or, as in this case, a significant decline in bitcoin values.

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