Floods recently passed in the Chinese province of Sichuan, caused significant damage to a large farm for the mining of cryptocurrency located in this region. This was written on June 30 by the local publication Golden Finance, specializing in blockchain and cryptocurrencies.
In addition, according to Ecns, the official English-language edition of the news agency China News Service (CNS), in the province of Sichuan and four other Chinese provinces on June 27-28 were heavy rains that caused serious flooding.
According to Golden Finance, the natural cataclysm touched a large farm for cryptocurrency mining in Sichuan province, which led to the loss of “tens of thousands” of devices for mining. The material notes that it is “almost impossible” to repair them.
What exactly cryptocurrencies were running on these devices and how many devices were damaged is not clear.
Mining is a resource-intensive process in which computing devices are used to process transactions and issue new coins in a cryptocurrency network. According to some forecasts, by the end of 2018, bitcoin will consume more than 0.5% of global electricity.
The largest amount of bitcoin mining falls on China, about 70%. The province of Sichuan is called the “Bitcoin Mining Capital”. This region has a high concentration of mining farms, thanks to the cold climate and cheap electricity.
Several news agencies, including Golden Finance, linked the drop in the hash rate of the bitcoin network (i.e., its total computing power) to a flood in Sichuan. However, the data from Blockchain.com show that on June 27 and 28 the hash rate increased on the contrary. This may indicate that the flooding has negatively affected the network of bitcoins.