After heavy rains and subsequent floods, a mining farm in China's Sichuan province was swept away. This led the miners to accept financial losses.
Poolin affected by floods
There are major mining companies in the world. According to TheBlockCrypto, Poolin is the fourth largest business measured in Hashrate. Molly Zhang, head of Poolin's official telegram chain, said that the building and the miners did not come from Poolin, but that some customers were using accommodation services.
The company has posted videos on Twitter about the floods and the damage it has caused. In the video, you can see employees digging in the mud to save the mining equipment.
Clip 2/2 staff extracting the miners from the mud: pic.twitter.com/QebXEqBjrN
– Poolin (@officialpoolin) August 21, 2019
Already before, Red Lid, co-founder of the crypto-news platform 8btc, had tweeted that the mining farms of Floods in Sichuan have been affected. Already in the past year, a similar incident has had worse effects.
8btc wrote that homeowners must pay the damages themselves, as these are not covered by insurance. It remains unclear how many mining devices have been damaged. However, it is clear that at least one owner suffered damage of more than one million yuan. It's around 128,000 euros.
Bitcoin miners choose Sichuan
Chinese miners are in a handful of provinces. Eighty per cent are located in Sichuan, the remainder being distributed between Yunnan, Guizhou, Tibet, Xinjiang and Heilongjiang.
There is a good reason why so many miners are based in Sichuan Province. The electricity costs are low, there is a good internet connection and the temperatures are low, so do not spend money on a cooling system. The low costs of electricity are due to the fact that too much renewable electricity is produced in this region. Overproduction of 30% is the language.
However, low electricity costs also cause a disadvantage. There are a variety of illegal mining miners and farms operating without the official approval of the local government. Therefore, the competent authority has launched a survey of illegal mining activities in the region.
Image via Unsplash
Corinna is the editor-in-chief of Coinwelt. Since 2016, his world is based around crypto-currencies and blockchain. No day goes by without Corinna being bored for not investing in Bitcoin the first day. She finds the international legal situation particularly interesting for currencies such as Bitcoin. For the future, she hopes for a positive attitude from lawmakers and clear laws on the treatment of digital parts.