Floods Damages Crypto Mining Operations
Recently the Sichuan province of China was hit by floods which have reportedly heavily damaged a major cryptocurrency mining operation in the area. The local blockchain and crypto information platform, Golden Finance, published this news first on June 30.
China News Service (CNS), has reported that Sichuan and four other provinces in China experienced heavy rains on June 27 and 28, resulting in floods. As a result, Golden Finance’s major cryptocurrency mining operation in Sichuan has been heavily foiled, leading to a loss of “tens of thousands” of mining devices. The miners seem “almost impossible” to repair, according to the site.
Mining is the computationally-intensive practice of using dedicated devices to process transactions and issue new coins in a cryptocurrency network. Bitcoin alone might consume 0.5% of the world’s energy by the end of 2018.
The information about which cryptocurrencies were being mined on the devices and how many of them precisely have been lost to the flood are still not known.
As much as 70% of Bitcoin mining takes place in China. Especially, the province of Sichuan has been called a “Bitcoin mining capital”. The availability of cold climate and cheap electricity has led to a high concentration of mining operations there due to the cold climate and cheap electricity.
Golden Finance along with other press, have associated the floods in Sichuan with a drop in Bitcoin network hashrate (total computational power).