Rumor Alert: Flood in China Destroyed Bitcoin Mining CentersJuly 3, 2018
Bitcoin users, traders, and investors were shocked by the recent rumors about the massive flood that affected the whole province of Sichuan in China. One of the largest Blockchain firms in the country reported that there was mining facility in the province of Sichuan that was destroyed by the recent flood.
INBlockchain, one of China’s leading Blockchain firm, was one of the early bitcoin investors of OmiseGo, EOS, Ethereum, and Zcash. It has become a well-known investment firm not only in China but in the entire Asian region. Eric Meltzer, a member of the INBlockchain, shared some of the images taken during the massive flood that is said to destroy the mining facility in the province of Sichuan.
As reported by the Chinese News Service (ECNS), heavy rain hit the provinces of Jilin, Anhui, Shandong, Jiangsu, and Sichuan. Jiangsu, Anhui, and Caolaoji were the provinces heavily hit. According to data gathered by the Blockchain, the total rate of bitcoin dropped from the 40 million mark to 30 million, was by more than 30% overnight. With the massive flood that devastated most of the country’s provinces, it was expected that the hashrate of bitcoin to drop that would alert all the analysts and investors.
According to Meltzer, their mining facility based in Sichuan, China has recorded a bitcoin hashrate drop due to the effect of the flood that devastated the province and the heatwave that causes their mining centers to earn a low profit. Today, the majority of the bitcoin’s hashrate is being originated from the mining pools like ViaBTC, AntPool, and BTC.com which are the leading sources of computing power across the globe.
Furthermore, the rumor about the destroyed mining centers in Sichuan, China are yet to be confirmed by the local agencies. Many believe that the heavy rain and strong floods that happened in the country is a very destructive catastrophe. However, a local analyst told the report that even when the flood wiped out the mining facilities, this is not enough reason to initiate the hashrate of bitcoin by 30% in just a very short length of time.
Analysts also explained that if the recent flood that took over China is the cause of the hashrate drop, this would only imply that the massive computing power that fuels the network is based on a single mining center. Due to the rumors scattered in China, analysts still wait for the confirmation by the local authorities of the province.