Bitcoin Hash Rate Decreased in Winter Storm

US Winter Storm Negatively Affected Bitcoin Hash Rate

During the recent winter storm in the US, Bitcoin's hash rate dropped by approximately 10%. This situation serves as an important example of how local power outages can strain the network's processing capacities.

Research shows that, similar to the regional disruptions experienced in China in 2021, a concentration of mining can lead to slower block times, higher fees, and wider market disruptions. The control of the Bitcoin hash rate by large pools increasingly makes the network vulnerable to local infrastructure failures.

On the other hand, the Bitcoin price does not show significant short-term effects. However, the impacts of such outages on mining activities are noteworthy.