Flooding in China has Damaged the Cryptocurrency Mining

In Sichuan has damaged the mining devices - CoinShot

Due to flooding in the Chinese province of Sichuan suffered a huge number of mining devices, which led to a serious damage to crypto production in this region. The news was published on June 30 on local blockchain and cryptocurrency information platform Golden Finance.

Ecns, the official English-language department of the China News Service (CNS), reported that June 27 and 28 in the province of Sichuan and in four provinces of China there were heavy rains, which led to floods.

According to Golden Finance, large-scale production of cryptocurrency mining in Sichuan province was badly damaged, which led to the loss of “tens of thousands” of mining devices. According to the site, equipment for mining seems “almost impossible” for repair.

While it remains unclear what cryptocurrencies were being mined on the devices, how many of them are exactly lost and can’t be recovered after the flood.

Floods in Sichuan Province has damaged the mining - CoinShot

Mining is an intensive practice of using specialized devices for processing transactions and issuing new coins in a cryptocurrency network. According to some reports, the Bitcoin network should consume 0.5% of global energy by the end of 2018.

To date, the bulk of Bitcoin’s production in China is up to 70%. In particular, Sichuan Province was named “Bitcoin mining capital” because of the high concentration of mining operations in it caused by cold climate and cheap electricity.

Several news media, including Golden Finance, are associated with the floods in Sichuan by the fall of the Bitcoin hashrate network (total computational power), which can affect the price of the BTC as a whole. However, the data from the blockchain.com website show that hashrate essentially increased from June 27 to 28, indicating that the flood effect wasn’t significant enough to affect the entire network.