Though many Texans are still suffering in the aftermath of a winter storm that left millions without power and running water for days, it’s unlikely that the crypto mining farms in the state played much of a role during the crisis.
Speaking to Cointelegraph, Kristy-Leigh Minehan, a mining consultant and chief technology officer of NEM Software, said Texas doesn’t currently have enough mining infrastructure to cause significant problems in the power grid when compared with that of major regions like Sichuan.
According to Minehan, German Bitcoin (BTC) mining operator Northern Data is likely the only one that could have had a significant impact on the state’s power supply. The firm owns a mining farm in East Texas, with others like HODL Ranch and Layer1 out in West Texas. The mining expert added that there were some farms largely not dependent on the state’s energy grid at all, like those that use excess gas formed as a byproduct of mining oil to power their rigs.
“A lot of these companies also have a lot of not just generators — they have a lot of renewable storage to play with, just in case,” said Minehan.
The effects of a disaster in Texas or the Southern United States on the Bitcoin hashrate is almost statistically insignificant when compared to one in China, whose miners control more than half the network’s hashing power. Minehan noted that the BTC hashrate only dropped roughly 10 TH/s during the recent snowstorm, which isn’t markedly more than the typical 5 TH/s fluctuations on a day-to-day basis. Blockchain data shows that hashrate fell from 160 TH/s on Feb. 11 to 150 TH/s following the coldest night of the winter storm.
Minehan opined that it was unlikely for mining farms in North America to have a larger effect on the hashrate without access to the right hardware. She said a major industry player like Intel getting deeper into developing mining chips could potentially turn the tide, but right now it seems like China will remain the stronghold.