CRYPTO NEWS

Riot Blockchain Mined 28% Less Bitcoin in July Due to Massive Heat Waves

One of the leading bitcoin mining companies – Riot Blockchain – mined 318 BTC in July – a 28% production decrease compared to June’s figures. The main reason for the crippled productivity was last month’s extremely hot weather in Texas.

It caused the company to shut some of its mining rigs in the area as an emergency step to prevent the electricity network from an outage. As a result, Riot Blockchain earned approximately $9.5 million in credits.

The Consequences of the Heat Wave

Last month’s extreme weather conditions in Texas caused numerous problems to the residents of the state and the companies located there. In fact, experts estimated that it was Houston’s hottest July in history as temperatures were hovering around 40 degrees.

A bunch of cryptocurrency mining firms shut down their operations because of the heat wave. Had they not done that, the problems to the state’s power grid could have been more significant, and the population could have been left with an unstable electricity supply during the scorching month.

One of those miners was Riot Blockchain. A recent update revealed that the move had pushed back the company’s production levels. In July, it mined 318 BTC, which at today’s prices equals nearly $7.3 million. In comparison, the entity produced 421 BTC in June.

It is worth noting, though, that last month Riot sold 275 BTC, generating profits of around $5.6 million (at the moment of the deal). In June, it parted with 300 coins.

In addition, the firm earned around $9.5 million in credits last month due to the warm-front and the halted operations at the Texas facilities.

Not long ago, Riot started moving all of its miners located in Massena, New York, to Texas. The transition is justified by the fact that regulators and lawmakers in the “Lone Star State” have displayed a crypto-friendly stance over the past months. At the same time, electricity prices there are much cheaper than in other regions in the USA.

The Texas City That Mines BTC

Speaking of the pro-crypto environment in the southern state, it is worth mentioning the city of Fort Worth. Earlier this year, it announced intentions to become the first US town that mines bitcoin.

The authorities’ plan is to employ three Bitmain Antminer S9 mining rigs in the mission donated by the Texas Blockchain Council. Fort Worth’s Mayor – Mattie Parker – believes digital assets will play a key role in the future of finance.

She appreciated the contribution, assuring that the city will decide whether to invest real cash into the mining endeavor after an assessment that will occur later in 2022.

New Findings Shows Institutional Investors Take More Interest In Ethereum

As the launching of the long-awaited Ethereum upgrade, Merge, approaches, there’s a spike in institutional investment. Ethereum products are receiving more attention from big-shot investors. Though there is no stated period for the Merge, most developers anticipate the upgrade by September 19. However, most Ethereum derivatives are getting more investment deals as the final phase::Listen

As the launching of the long-awaited Ethereum upgrade, Merge, approaches, there’s a spike in institutional investment. Ethereum products are receiving more attention from big-shot investors.

Though there is no stated period for the Merge, most developers anticipate the upgrade by September 19. However, most Ethereum derivatives are getting more investment deals as the final phase details are revealed.

James Butterfill, the Head of Research of CoinShares, stated that investors’ sentiment for Ethereum products is changing. Butterfill made this known in the latest edition of Digital Asset Fund Flows Weekly Report. He noted that the sudden intensity and desire from the investors is due to the Merge approach.

According to the report, most institutional investors make preferential investments in Ethereum products. Hence they are pushing in more funds as they believe in the great possibility of the Ethereum network.

ETH maintains a steady uptrend on the chart l Source: ETHUSDT on TradingView

To them, upgrading the global second largest cryptocurrency would create a more positive and profitable impact. Due to the change in sentiment, the report noted that Ethereum had seen more inflows amounting to about $16 million. This resulted in a seven-week pattern of inflows that accumulated up to $159 million.

So, Butterfill reports that the change in the investors’ sentiment signifies more clarity with the Merge’s timing. This would create the desired transition for the Ethereum network as it moves from Proof-of-Work (PoW) to Proof-of-Stake (PoS).

Ethereum blockchain has been operating with a PoW consensus mechanism for its transaction validation and security of its network.

Unfortunately, this involves using the mining process that consumes more energy or electricity. But the Merge would transform the system of operation for the blockchain. First, it would start using the more energy-efficient staking process that requires the staking of ETH tokens.

Plan For Ethereum Merge Has Been A Tough One

The plan for the shift has been delayed for several months. But as the date for the launch approaches, Ethereum proponents are having their fun-filled season. The journey has taken several rough routes that include changes in roadmaps, ambiguous terminology, and, lastly, the recent opposition to the Merge.

On the part of its founder, Vitalik Buterin, he kept announcing all the possible hard forks to the transition. This action is an excellent advantage for any PoW blockchain that may opt for a change in the future.

However, some prominent personalities in the industry don’t mind a hard fork. For example, Justin Sun, the founder of Tron, pledged the listing of both ETHs and ETHw tokens on his Poloniex exchange. Also, BitMEX revealed its support for any ETHPoW fork.

Once it finally happens, it will link the Ethereum mainnet and the Ethereum 2.0 Beacon Chain for a complete transition to PoS. Hence, Ethereum 2.0 would receive increased efficiency and security in its execution of transactions.’

Also, there would be a drastic reduction of carbon emission into the environment by over 99% as the network become energy efficient. This was one of the main criticisms against Ethereum as a PoW network.

Featured image from Pixabay, Chart from TradingView.com

Riot Blockchain Mined 28% Less Bitcoin in July Due to Massive Heat Waves

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