Sichuan Floods Reveal The Small-Time Bitcoin Miners In China

Jul 19, 2018 at 04:38 Update Date :Jul 19, 2018 at 04:38 UTC

The latest flooding in the Chinese province of Sichuan has caused a lot of trouble to the residents, which also happen to include a formerly obscure bunch of cryptocurrency miners. The natural disaster has unveiled the existence of a large army of Small-Time Bitcoin Miners. As reported, the people have had to face a lot of suffering and a harsh economic state of affairs.

Following a Chinese news resource Yiben Blockchain via Jiemian, a special report brings forward the story of Li Yang, who owns a small Bitcoin mining farm. It was found that the area where Li belongs is flanked by a hundred similar small-sized mining farms.

As claimed by a Chinese report, more than 5 million mining rigs are established over the Sichuan Mountains. Also, according to the approximation, 70 percent of the Bitcoin network’s hashrate originates from China. Further, 70% of this total belongs to Sichuan. The acute flooding has, therefore, had a further adverse effect on the complete Bitcoin network of that area, leaving the mining farms and equipment in ruins.

It is for the first time that the people belonging to such a sequestered mountainous region, surrounded by hundreds of mining rigs, have been looked upon with concern.

Li Yang informs that the reason they belong to the remote area is the low electricity cost, prevailing due to the presence of a number of hydropower installations along the Lancang River basin.

“In times of high water, electricity costs as little as 0.08 Yuan/kWh — three times less than the Chinese national average.”

He also tells us about how it is almost impossible to survive there, with absolutely no human contact.

“Do you know what I am most afraid of? It is power outage and loneliness”, says Yang.

However, in June, the severe flooding completely revamped Sichuan’s scenario and also shook the lives of thousands of Bitcoin miners. The floods cost Li 10 million Yuan (approximately $1.5 million) in equipment and lost income, and more so to hundreds of others. The total number of mining rigs lost is approximated at 20,000, with financial losses totaling 100 million Yuan (~$15 million).

As suggested by Li in the report, everything is close to an end and the last accessible space for the small-time miners like him has been taken away as well. He mentions, “It is really impossible to do it. Every month, the custodian will pay the electricity fee of 500 Yuan per month to a mine owner in advance, and the mine owner will run the electricity bills.”

However, briskly jumping to a conclusion would be incorrect. Let’s wait and see what the future is for Sichuan’s mining army.

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