The largest concentration of small-scale Bitcoin (BTC-USD) miners in the world has been exposed following the floods which recently swept across the Sichuan province in China. A report focusing on the floods revealed an interesting story of how the residents of the said Chinese region exhibit perseverance even in times of trouble and discomfort.
A significant portion of the hash rate on the Bitcoin network has since been lost, following the floods. This occurred since a lot of mining equipment that was stored in various makeshift farms in the area was destroyed.
China hosts 70% of the hash rate
The report disclosed that mining rigs totaling over 5 million are hosted in the Sichuan province. There have been claims that approximately 70% of the hash rate on Bitcoin’s network comes from China. And 70% of that is located in the mountainous region of Sichuan.
The recent floods led to the discovery of about 250,000 people who live secluded in the region. They live a lonely life, only surrounded by ASIC mining rigs, which are claimed to be in the thousands.
Li Yang is one of the residents of this secluded mountainous region. Since the area is surrounded by 20 hydropower installations, the miners enjoy a cheap rate of electricity.
Yang’s description signifies a lonely life devoid of human interaction. The only solace he has is games and WeChat since he is only surrounded by mining machines. He confessed to being only frightened by loneliness and a power outage.
Low electricity cost
Since the hydropower stations are installed along the Lancang River basin passing through the region, electricity costs as low as 0.08 Yuan per kWh, during periods of high water. This is caused by the fact that the power stations have too much electricity that cannot be used.
Mining rigs totaling tens of thousands were destroyed by the floods rendering thousands of Bitcoin miners jobless. Li is counting losses to the tune of 10 million Yuan in lost revenue as well as equipment. About 20,000 machines have been lost leading to a 100-million-Yuan loss.
In 2017, Li quit his job at Apple and relocated to Sichuan. Attracted to the simple mining business, he opened his own crypto mine close to a hydropower station. Li reveals that operating a mining pool is expensive hence, customers host mining machines after paying for them.