Floods in China’s Sichuan province have caused the overall hash rate of the Bitcoin [BTC] to decline. The Sichuan province is known for being on the premier area for mining in China, accounting for over 70% of China’s mining output.
The floods in question were caused by continuous heavy rains, with local hydropower and communication facilities being damaged. The poor building infrastructure of the mining facilities situated in the area contributed to the problem as they were not equipped to handle the disaster.
The province has become a hotbed for miners, due to the low electricity cost and low temperatures. Surrounding hydroelectricity plants have drastically reduced the electricity costs, which allows miners to maximize their profits. The cool climate, due to the surrounding mountainous region has also reduced cooling charges for mining hardware.
As there is no specific data concerning the total amount of lost assets, Chinese reports state that “tens of thousands of mining machines have been flooded”, being scrapped and “almost impossible to repair”.
It is also important to note that China is one of the biggest proponents of the anti-cryptocurrency rally, with a blanket ban occurring earlier this year. The Chinese President Xi Jinping has made statements praising the blockchain for its applications, calling it a “breakthrough”.
Interestingly, China’s Ministry of Industry and Information Technology has begun releasing a monthly ranking of cryptocurrency projects. The list currently includes 30 projects, with EOS at the first place due to being “highly active in technological innovation”. Bitcoin, in comparison, has dropped to 17th place from its previous ranking of 13th.
However, due to a cheap hardware market, mining has always been a popular option for income in the country. 70% of the world’s mining hashpower comes from China, with Bitcoin’s biggest mining pool, Antpool, based out of China.
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