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Sunday, July 1, 2018

Floods in China are destroying 'tens of thousands' of Bitcoin mining rigs...

The Sichuan province of China has been called the "Bitcoin mining capitol" of the country - and it's just been hit with harsh weather, heavy rains - followed by major flooding.

Initial reports out of the region are claiming losses of "tens of thousands" of mining rigs, worth millions in hardware and even more in lost mining fees.

According to Chinese news outlet Jinse (link)...

"[Translated] Recently, continuous storms hit Sichuan Mianyang, Guangyuan, Chengdu, Aba, Meishan and other places, causing floods. The collapse of the mountains and the rapid rise of the river have caused local hydropower and communication facilities to suffer from various degrees of damage. At the same time, in areas such as Sichuan and Aba, which are rich in electricity and electricity, these areas have become a centralized area for cryptocurrency mines. In the flood, some mines were not spared, and tens of thousands of mining machines were flooded. Inundation, heavy losses."

The good news is, the loss on mining power hasn't had a measureable effect on the Bitcoin network overall - there has been no noticeable decline in transaction confirmation speeds or hash rates.

It is estimated up to 70% of Bitcoin miners are located in China, where low cost coal and hydraulic power gives miners a large cost advantage.
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Author: Adam Lee 
Asia News Desk