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Bitcoin Miners Are Flocking in Droves to This Region Because of Cheap Hydro Power  

  • Alex Dovbnya
    📰 News

    The summer rainy season is almost here in Sichuan, and that means that it will be soon occupied by Bitcoin miners who want to boost their profits


Bitcoin Miners Are Flocking in Droves to This Region Because of Cheap Hydro Power  
Contents

The recent Bitcoin price surge to almost $14,000 made cryptocurrency mining even more competitive. Hence, mining companies (by hook or by crook) are vying to set their foot in the region that boasts the lowest electricity rates on the planet during the rainy season.

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Enter the crypto mining paradise

Sichuan is an extremely picturesque region with mighty rivers and colorful pools that is also known for its extremely cheap hydroelectric power. 

A Bitcoin mining farm near a a hydroelectric power plant
image by EPA/LIU XINGZHE/CHINAFILE

As the wet season approaches, Sichuan once again becomes the most coveted destinations for mining firms given its extremely cheap electricity prices.

The competition is so intense that some Bitcoin mining farms operate in the region without obtaining respective approval from the local land-resource bureau. That prompted a crackdown from the Chinese authorities.

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China’s impact on mining

According to cryptocurrency analytics company Coinshare, China is responsible for 2/3 of the total hashrate, but the more peculiar thing is that the majority of mining operations take place in Sichuan.

Meanwhile, the total hashrate of the Bitcoin network has recently climbed to a new record high of 69,000 petahashes per second, thus recording a two-fold increase since December’s lows.
 

However, the situation could drastically change if China persists with its plan to ban Bitcoin mining due to its bad environmental impact. As reported by U.Today, the clampdown was suggested by the National Development Reform Commission (NDRC) back in April.

Cover image via 123rf.com
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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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