There was a considerable dip in Bitcoin network hashrate last week, with unconfirmed reports linking the drop in hash rate to floods in Sichuan province, which accounts for nearly 70% of China’s mining output.
Ironically, there are regular reports of crack down of mining and cryptocurrency industry by the Chinese authorities. Still, China accounts for a lion’s share of mining, mainly due to the availability of cheap hardware.
There are no specific details available about the extent of damage on the mining industry. However, Golden Finance has provided photographic evidence of the destruction cause by floods. The photos show a large amount of mining hardwares lying on ground, probably damaged without any possibility of getting repaired.
The floods hit the Sichuan province sometime around June 24. According to Golden Finance, hash rate declined sharply during this period.
In the meanwhile, the country continues with its efforts to erase cryptocurrency related operations in the country. Last week, a miner who owns a 200 machine farm was arrested for not paying electricity bills deliberately since April. Xinhua had reported that the miner failed to estimate the cost of running such a large operation, resulting in an electricity bill of 6,000 yuan ($930) on a daily basis.
