Heavy Flood in Sichuan China has Destroyed Major Crypto Mining Operation
July 2, 2018 1:25 pm
Massive Floods in the Sichuan province of China have reportedly in extensive damage to a major cryptocurrency mining operation in the area. The news published on local blockchain and crypto information platform Golden Finance.
Ecns, the official English-language outlet of the China News Service (CNS), has published that Sichuan and four other provinces in China received heavy rainfall on 27 & 28 June resulting in floods.
Golden Finance asserted that a major digital currency mining operation in Sichuan had been massively affected, pointing to a loss of “tens of thousands” of mining devices. The miners seem “almost impossible” to repair, according to the site.
As press time it remains unclear what digital currencies were being mined on the devices and how they have been lost to the flood.
Mining is the computationally-intensive practice of utilizing dedicated devices to process transactions and issue new coins in a digital currency network. Some report claim, Bitcoin’s network alone is set to consume 0.5% of the world’s energy by the end of 2018.
As per a report around 70% of Bitcoin mining happens in China. Particularly the province of Sichuan has been called a “Bitcoin mining capital” because of the high concentration of mining operations in it, drawn in by the cold climate and cheap electricity.
Many news outlets, including Golden Finance, have linked floods in Sichuan with a drop in Bitcoin network’s hashrate (total computational power). Although, data from blockchain.com shows that that the hashrate has, in fact, rose from June 27 to 28, indicating that the floods’ effect was not significant enough to affect the whole network.