Monday, January 17, 2022
HomeNewsRumor: Huge Floods in China Knock Off Bitcoin Mining Centers

Rumor: Huge Floods in China Knock Off Bitcoin Mining Centers

Continuous heavy rainfall swept most parts of China this week, affecting thousands of people and causing heavy economic losses, according to the Ministry of Water Resources. But according to Chinese local blockchain and crypto information platform Golden Finance, the industry that has suffered huge damages among others is the crypto mining industry which finds a strong foothold in Sichuan.

This week, Meltzer shared a photograph of a destroyed mining facility showing stacks of ASIC miners that were affected by heavy rain and flood that swept most parts of China over the past few days.

 

The Chinese News Service (ECNS), the second largest state-owned news agency in China, reported:

“From Wednesday to Thursday, heavy rain hit Anhui, Jiangsu, Sichuan, Shandong and Jilin provinces. Caolaoji, Anhui, and Dafengzha, Jiangsu, were the most heavily hit, the State Flood Control and Drought Relief Headquarters said.”

Last week, over Wednesday and Thursday, heavy rain hit Anhui, Jiangsu, Sichuan, Shandong and Jilin provinces according to the State Flood Control and Drought Relief Headquarters said. According to the National Meteorological Centre, heavy rainfall will hit areas including Hubei, Sichuan and Jiangsu provinces over the coming week, and some areas will also see thunderstorms.

Most Bitcoin mining operations are in China. As of late 2017, it is estimated that almost 70 percent of all Bitcoin mining is located in China. In China, specifically Sichuan, a province of China, has been termed as a global Bitcoin mining capital.

More than 20 mining companies and 10,000 Bitcoin miners are located within Sichuan’s Mabian Yi Autonomous County, a cold and mountainous region with just over 215,000 residents and Kangding, a region within Sichuan well known for its natural beauty.

Sichuan provided all facilities that a crypto mining company needed. The region had a downward moving graph of electricity costs and is fairly remote with a limited number of residents having far fewer noise complaints. With a cold climate, very cheap electricity and low population density, Sichuan have transformed itself into global Bitcoin mining hubs.

Devastation on a scale caused by the torrential rainfall in China would normally shut down centralized networks for days, if not weeks. The Bitcoin network has operated as usual, regardless of the flooding.

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