While cryptocurrencies are currently in great difficulty with stock market crashes which considerably weaken the market, the fatal stab could well come from a hitherto unsuspected enemy. Global warming – including its heat waves – is indeed forcing Bitcoin mining operations to pause.
Nothing is going well for the cryptocurrency market. While Bitcoin is at its worst and experts believe it could soon drop to $10,000, global warming is gradually turning into a hitherto unsuspected enemy. As you probably know, Bitcoin mining consumes a lot of energy. Cryptocurrency mining would thus consume nearly 0.5% of all the world’s electricity. This is notably 7 times more than what Google’s infrastructures consume.
It is for this reason that countries like Kosovo or China have banned the mining of cryptocurrencies on their soil, the fault of the too many electricity shortages created. But now, a new problem arises with global warming. The resulting heat waves also affect electricity consumption. And in particular, Bitcoin mining operations must pause.
Global warming puts another stab at Bitcoin
If France is currently going through a very significant heat wave, it is on the other side of the Atlantic that global warming is starting to harm Bitcoin. In Texas, in particular, the heat is extreme and violent. It is over 35 degrees in most of the state and temperature records will certainly be broken in the coming days. Cryptocurrency mining in the area is thus becoming more and more complicated.
The biggest electricity consumers in the area must then put their activities on hold, which therefore also concerns the mining of cryptocurrencies. the Texas Blockchain Council, which brings together several dozen individual crypto companies, notably suspended its activities. The same goes for the Riot Blockchain, one of the largest mining operations in Texas, which announced on Twitter a reduction in its activity. Knowing that global warming is not likely to disappear quickly, the future of cryptocurrency mining is more uncertain than ever.