Floods in China’s Sichuan Region Destroys Bitcoin Mining Centers, Reports Local Media

According to the latest reports coming from the local Chinese media, Bitcoin Mining centers in the Sichuan region of the country have been adversely affected due to heavy floods in the region. This could be probably one of the reasons resulting in the drop of the Bitcoin mining hashrate which appeared last week on June 27.

The Sichuan province itself accounts for more than 70% output of China’s cryptocurrency mining activities. Based on some of the available photographic evidences, Golden Finance reported that “At present, there is no specific data on the losses at the Sichuan mines. However, from the perspective of the area affected by the disaster, at least tens of thousands of miners have been flooded. From the photographs, these miners are apparently defunct and are likely beyond repair.”

As per the data on blockchain.info the hashrate of BTC had dropped by a considerable 30 percent from 43 million TH/s to 30 million TH/s, overnight. This sudden drop caused the BTC community comprising of investors and analysts to be alert.

Bitcoin mining is the process of adding up new blocks to the Bitcoin network by solving complex mathematical equations. China has been a forerunner in Bitcoin mining with several big corporations establishing their base due to availability of cheap hydro-electric power in some regions of the country.

However, the Chinese government earlier this year had a heavy crackdown on mining activities taking place in the country. Just last week, the local Chinese police had arrested a miner who deliberately avoided to pay the bill for operating a 200-machine mining rig since this April.