Skip to content

Blockchain News Feed

All the latest news on Blockchain & Cryptocurrencies

Menu
  • Home
  • News
  • Exchanges
  • Market Analysis
  • YouTube
  • Brave Browser
Menu

Chinese Bitcoin Miners Hit With Heavy Losses After Flood Damage

Posted on juli 2, 2018 by Blockchain News
Chinese Bitcoin Miners Hit With Heavy Losses After Flood Damage

Massive flooding in some parts of China has damaged several bitcoin mining farms, leaving Chinese miners with heavy losses, and resulting in a fall in the Bitcoin hash rate.

Flooding and Mountain Collapse

According to local reports, severe storms hit many areas including Sichuan Mianyang, Guangyuan, Chengdu, Aba and Meishan, causing flooding and land movements. The flooding resulted in the collapse of a few mountain formations, and substantially raised river water levels, causing a failure of local hydropower and telecommunication infrastructure due to equipment damage.

The areas of Sichuan and Aba in particular, which have gained popularity as bitcoin mining hotspots due to their abundance of cheap electricity, suffered catastrophic damage as several million dollars worth of mining equipment damaged by floods. Apart from the massive material loss to bitcoin miners in the area, the incidents also led to flooding on the Bitcoin blockchain, as its overall hash rate suffered a significant drop when tens of thousands of Chinese mining rigs went offline.

Bitcoin Mining in China

Available data puts the percentage of the world’s cryptocurrency mining capacity from China at more than 70 percent. This means that most blockchains are dependent on Chinese miners for their hash rate. Sichuan alone accounts for more than 70 percent of China’s total coin mining capacity, meaning that approximately 49 percent of the world’s Bitcoin hash rate is dependent on this single area of China.

Favored by crypto miners for its cheap and abundant electricity and low operating costs, Sichuan is effectively the world’s crypto mining headquarters, hosting several mining setups built using basic construction setups in remote mountain villages. In part as a result of the flimsiness of the majorly flimsy construction setups, the floods and earth movements had a disastrous effect on the operation of coin miners in the area, leading to reports of temporary flooding on the bitcoin blockchain.

Data from Golden Financial shows that the Bitcoin’s hash rate has been on a significant downward trend since June 24, reaching its lowest point in 20 days on June 27, which mirrors the time of the floods in China.

At press time, there was no exact data regarding the number of mining farms destroyed, but it is estimated that tens of thousands of mining rigs have been irreparably damaged. Notwithstanding, the flooding is expected to be only a temporary setback to bitcoin mining in China, which remains an extremely popular space despite the ban on trading of crypto assets in China.

While the ban remains in effect, Chinese authorities have not placed any restriction on coin mining, seeing it as an economically beneficial activity as long as miners do not engage in electricity theft and other forms of illegal coin mining.

The post Chinese Bitcoin Miners Hit With Heavy Losses After Flood Damage appeared first on BTCMANAGER.


Source: BTCManager.com
Original Post: Chinese Bitcoin Miners Hit With Heavy Losses After Flood Damage

Ledger Nano X - The secure hardware wallet

Recente berichten

  • Potential BULLISH DOT Divergence | Polkadot Price Prediction
  • A NEW Coin Making BIG NEWS + The NEXT El Salvador? & This Would NORMALLY Be MAJOR News
  • Blockchain Analytics Firm Kaiko Raises $53M Series B Led by Eight Roads Amid Bear Market
  • Terra Classic spiked 17.63% in last 24-hour; reason might comfort you
  • Harmony Attacker Moves Over $44M Worth of Stolen Ether, Authorities Alerted

Categorieën

  • Altcoin Buzz
  • Altcoin Buzz News
  • AMBcrypto
  • Bitcoin.com
  • Bitcoinist
  • BTC Manager
  • CCN
  • Coin Mastery
  • Coindesk
  • Coinpower News
  • Cointelegraph
  • CryproSlate
  • Crypto Daily
  • Crypto News (.net)
  • Cryptocoin News
  • Cryptocurrency News
  • CryptoDaily.co.uk
  • CryptoPotato
  • CryptosRUs
  • Daily HODL
  • DataDash
  • Ethereum Worldnews
  • Exchanges
  • ICO's
  • Invest in Blockchain
  • Market Analysis
  • News
  • News BTC
  • Newsbit
  • Portfolio
  • Pricecheck
  • Ready Set Crypto
  • The Modern Investor
  • ToshiTimes
  • Use The Bitcoin

Archieven

  • juni 2022
  • mei 2022
  • april 2022
  • maart 2022
  • februari 2022
  • januari 2022
  • december 2021
  • november 2021
  • oktober 2021
  • september 2021
  • augustus 2021
  • juli 2021
  • juni 2021
  • mei 2021
  • april 2021
  • maart 2021
  • februari 2021
  • januari 2021
  • december 2020
  • november 2020
  • oktober 2020
  • september 2020
  • augustus 2020
  • juli 2020
  • juni 2020
  • mei 2020
  • april 2020
  • maart 2020
  • februari 2020
  • januari 2020
  • december 2019
  • november 2019
  • oktober 2019
  • september 2019
  • augustus 2019
  • juli 2019
  • juni 2019
  • mei 2019
  • april 2019
  • maart 2019
  • februari 2019
  • januari 2019
  • december 2018
  • november 2018
  • oktober 2018
  • september 2018
  • augustus 2018
  • juli 2018
  • juni 2018
  • mei 2018
  • april 2018
  • maart 2018
  • februari 2018
  • januari 2018
  • december 2017
  • november 2017
  • oktober 2017
  • september 2017
  • maart 2017
  • juni 2016
  • juli 2014
  • september 2013
  • augustus 2013
©2022 Blockchain News Feed | Design: Newspaperly WordPress Theme