Mining

Floods in China create Havoc for Cryptocurrency Miners

Floods in the Sichuan province in China due to the heavy rains on June 27th and June 28th had become so severe that cryptocurrency mining operations in the area were damaged. According to the miners, these repairs are ‘almost impossible’ to repair.

China has been booming regarding Bitcoin mining activities even though the government has maintained a strict stance on cryptocurrencies in the country. According to sources, China accounts for nearly 70% of the world’s Bitcoin mining activities, with Sichuan being declared ‘Bitcoin mining capital.’

Bitcoin mining needs cold temperatures due to the high computational operations which can thus take up high bills concerning electricity. Therefore colder climates are preferred to reduce electricity charges. Sichuan is also known to have lower electricity costs compared to other provinces in the country, which leads to many miners operating from Sichuan.

The Sichuan floods have thus reported having reduced the hashrate from 43 million TH/s to 30 million TH/s which is more than 30% overnight.

Eric Meltzer, a partner at INBlockchain which is the largest blockchain-focused fund in China reported that the destruction was pretty severe for mining operations in Sichuan.

INBlockchain is known to be one of the most influential cryptocurrency investments firms in Asia especially China.

Eric Melter posted a picture of a damaged mining facility which would get any cryptocurrency miner crying given the stacks of ASIC miners that are seen affected.

Meltzer, who is experienced in cryptocurrency pointed out that the Bitcoin hashrate drop is because of both the flood in Sichuan and the heatwave across Eastern Europe which is filled with mining centers too.

A few weeks ago Brad Garlinghouse had accused China of controlling Bitcoin at the Intercontinental Boston due to its mining operations of Bitcoin.

Do you think, the Chinese have a major impact on Bitcoin’s price and value given the strength of its mining operations? Let us know your thoughts!

Image Source: “Flickr”


Use Coupon Code: "News" and Get 20% OFF on Your Order!

Let's discuss!