As the Bitcoin mining reward halved, miners’ hash rates continued to hit record highs even as the number of Bitcoins mined was cut in half.
This means that despite the sharp drop in mining profits, competition in the industry remains extremely fierce. Especially as the North American summer approaches, high temperatures become a serious problem. This is not only because mining farm equipment requires more electricity to cool, but also because peak hours when residents use air conditioners can cause a surge in electricity demand, which increases energy costs.
In the summer, many miners have to reduce operations. This is partly because mining machines are prone to overheating and require more cooling facilities to keep operations stable. Another reason is that residential electricity consumption has reached a level that requires the implementation of demand response clauses in power company agreements. These clauses generally require large energy users (such as mining farms) to reduce electricity consumption during times of high grid stress to ensure stable operation of the grid.
Therefore, although the mining industry remains strong in technology and competition after the halving, this growth momentum may slow down in the summer as miners need to deal with the challenges of high temperatures and energy consumption.
