Flooding in several provinces in China has caused a digital coin operation to suffer from major damage.
According to statistics, 70% of the world’s cryptocurrency mining machines are in China, while Sichuan mining machines account for 70% of the country’s total. Reports of widespread power outages have hampered reports. Many had to be evacuated.
Golden Financial found that by looking at Bitcoin’s entire network, it found that since June 24, the whole network’s computing power has dropped significantly.
Sichuan is the center of the world’s mines. Just before the flood disaster occurred, there were still a large number of mining machines hosting orders from the Sichuan mine.
From the photographs, these mines are generally built in deep mountain villages, and the housing is relatively simple. The flood disaster struck, and the mines had no recourse in the face of powerful natural disasters.
The pile of graphics cards shows how many this one operation had in use. Now they stand as junk with little to no salvage. Used video cards from China are now unsellable.
Most likely the operation will relocate to higher ground so that flooding is not going to be a factor down the road but with low prices the profitability is negligible.
Obviously the flooding has damaged serveral operations. Golden Finance said digital coin mining was at a recent low.
Longer term flooding has been a growing problem so officials are likely looking at ideas to improve the hydrology so that floods are better managed. The cost is biggest problem.