Riot Blockchain, which operates one of the most significant Bitcoin mining operations in Texas, generated over $9.5 million in power credits after turning off its miners one month ago.
According to the monthly report that Riot produces, the company has voluntarily cut its energy consumption in order to make more power accessible to ERCOT. ERCOT is responsible for supplying electricity to 25 million people in the state of Texas.

According to Jason Les, the CEO of Riot, ERCOT had record-breaking levels of energy demand in the month of July. In order to ensure that more power would be available to the state of Texas, the company cut a total of 11,717 megawatt hours of power, which is enough to provide more than 13,000 ordinary residences in Texas for an entire month.

In spite of the fact that Riot was able to significantly cut its monthly power expenses by decreasing its power consumption, the company's Bitcoin production decreased by around 21 percent month over month. During the month of July, Riot was able to create a total of 318 BTC, bringing its total holdings to 6,696 BTC. During that same month, the company made a total of roughly $5.6 million dollars through the sale of 275 bitcoins.

Because they saved 11,717 megawatt hours of energy, the company was awarded power credits worth around $9.5 million. Riot was able to save money by turning off its miners rather than continuing to mine, which would have resulted in a loss of $1,122 per MWh in revenue. According to estimations provided by Arcane Research, the company would have generated approximately $140 per MWh if they had mined bitcoins instead of using the electricity in question.

The Beauty of Hive Blockchain

This paper demonstrates the usefulness of the Hive blockchain, which does not rely on any type of computation that requires high-powered computers to validate transactions. The consensus process of the Hive blockchain is a combination of proof of brain (POB) and proof of stake (POS), which makes a lot of sense given that it is both power efficient and sensible.

Imagine trying to mine Bitcoin but finding that your power costs are more than your profits in BTC. It's no wonder that most people aren't interested in trying it again, and most mining companies have given up on their mining farms and are flooding the technological market with GPUs. It is a revelation that is quite fascinating.

Spending power inefficiently at a point in history when power is needed more than it has ever been before produces more harm than good and could be interpreted as an endeavor that is counterproductive to humanitarian causes.

Although it is possible that the price of Bitcoin will increase above its current level in the near future, which could make mining more profitable than saving on electricity, mining remains a power-hungry and inefficient process at the moment, and is likely to remain so for the foreseeable future as well. Thanks to the Hive blockchain for deciding to go the POS and POB route instead, that makes mining less relevant.

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