BTC Hash Rate Nearing ATH, Iceland Rejecting New Bitcoin Miners Due to Power Shortage
Bitcoin’s On-chain usage is also on an uptrend, with average active addresses topping 1 million, last seen in May.
Landsvirkjun, the National Power Company of Iceland, is reducing supplies to some industrial customers, including new Bitcoin miners, due to a lack of power in the Nordic island country.
Iceland’s largest electricity generator is turning away new Bitcoin miners to reduce commercial energy usage during this hydro supply crunch. Hive Blockchain, Genesis Mining, and Bitfury Holding are among the crypto miners operating in Iceland.
This reduction in supply applies to large customers on short-term contracts that are curtailable. Besides crypto, data centers, aluminum smelters, and fish meal factories also feel the impact of this.
Talking about the reasons for this reduction, effective immediately, the company said they are currently dealing with low hydro reservoir levels, and a malfunction at a power station as well as a delay in obtaining power from an external producer led to the reduction.
Tinna Traustadottir, executive vice president of sales and customer service at Landsvirkjun, said record demand also played a part here.
Amidst this, the Bitcoin hash rate is climbing to its all-time highs, currently, at 180.5 Th/s, inches away from 197.6 Th/s hit in mid-May. The hash rate has been on an uptrend since hitting bottom at 68 Ths in late June following the exodus of miners from China as the central bank cracked down on crypto mining.
Second highest Hash Rate ever pic.twitter.com/oHII0jayuH
— Charles Edwards (@caprioleio) December 7, 2021
On-chain usage also increased last week, with BTC’s 7-day average active addresses topping 1 million for only the second time since June. Fees also surged, reaching $896.3K for BTC, representing a 32.2% week-over-week increase.
This spike came as the crypto experienced a crash this past weekend. As BTC price tanked under $42,500, volatility had Bitcoin holders getting active and sending the number of active addresses to a seven-month high.
The last time active addresses reached this high was in May, again during the period of high volatility, and bitcoin crashed at the time too. The number of active addresses surpassed 1.2 million in May, which then fell under 750k in July but ever since then, it has been increasing steadily.