China Floods Wipe Out Crypto Mining Farms, Bitcoin Hashrate Drops

The cumulative hashing power dedicated toward Bitcoin took a hit this week after extensive flooding of mining centers in Sichuan, China.

Rumors that a huge flood in Sichuan took out a bunch of BTC mines pic.

Chinese cryptocurrency news platform Golden Finance published an update on June 30, stating that the flooding in Sichuan led to the loss of tens of thousands of mining devices that are impossible to repair.

The Sichuan region where the flooding occurred has been referred to as the Bitcoin mining capital of China, primarily due to abundant hydroelectric power and a cool climate.

The close proximity of mining operations to streams within the mountainous region places mining farms at risk of flooding.

Mining on the Rise in China as Regulatory Stance Softens.

The low cost of energy in China catalyzed a surge in mining activity over the last two years, with energy retailers and wholesalers participating in the crypto mining ecosystem.

Cryptocurrency angel investor Chandler Guo commented on the rise of energy company-driven crypto mining in China during an interview with ether.

"Today, the energy companies are jumping on the Bitcoin mining business. Before that, we bought electricity from them to mine Bitcoin. Today, the seller who is selling electricity to us, they're mining Bitcoin by themselves."

The People's Bank of China issued a public statement at the beginning of 2018 in order to squash rumors of a potential regulatory shutdown of Bitcoin mining activities, resulting in the rapid proliferation of mining operations within the country.