Chinese Media: Flood Causes Serious Damage to Large Mining Farm
Recent floods in China’s Sichuan province have caused significant damage to a large cryptocurrency mining farm located in the region. This was written on June 30 by the local publication Golden Finance, specializing in blockchain and cryptocurrencies..
In addition, heavy rains fell in Sichuan and four other Chinese provinces on June 27-28, causing severe flooding, Ecns, the official English-language publication of the China News Service (CNS), reported..
According to Golden Finance, a natural disaster affected a large cryptocurrency mining farm in Sichuan province, resulting in the loss of “tens of thousands” of mining devices. The article notes that it is “almost impossible” to fix them.
It is not clear what kind of cryptocurrencies were mined on these devices and how many devices were damaged..
Mining is a resource-intensive process in which computing devices are used to process transactions and issue new coins on the cryptocurrency network. According to some forecasts, bitcoin will consume more than 0.5% of the world’s electricity by the end of 2018.
The largest volume of bitcoin mining is in China – about 70%. Sichuan province is called the “capital of bitcoin mining”. This region has a high concentration of mining farms due to the cold climate and cheap electricity..
Several news outlets, including Golden Finance, have linked the drop in Bitcoin’s network hash rate (i.e., its total computing power) to the flooding in Sichuan. However, data from Blockchain.com show that the hash rate increased on June 27 and 28. This may indicate that the flood has slightly affected the Bitcoin network..