Chinese miners are forced to disconnect from the cryptocurrency network due to floods.
The plans of cryptocurrency miners in China, the largest bitcoin mining center, were ruined by the rainy season. Due to the disaster, many market participants lost access to electricity. As a result, the hashrate dropped, CoinDesk reports.
a number of Chinese mining pools have decreased hash rates
In China, 71.7% of the BTC hashrate is concentrated. The concentration of miners in China has made the country the largest bitcoin mining center. For comparison, Russia, which takes the second place, has only 6.08% of the cryptocurrency hashrate.
At the moment, the rainy season continues in China. Traditionally, the period has been considered particularly lucrative for Chinese miners as they can get cheap electricity from hydroelectric power plants. However, this time the precipitation disrupted the plans of cryptoindustry companies.
According to media reports, heavy rains destroyed part of the power lines. As a result, many miners were left without electricity. This, among other things, is evidenced by the drop in the hash rate of popular Chinese mining pools, including PoolIn, F2Pool, BTC.com and Antpool. Many platforms have lost over 20% of their computing power over the past day.
Kevin Peng, CEO and co-founder of one of the popular Chinese cryptocurrency mining pools PoolIn, said that due to floods, many regions don’t have access to Internet. According to him, some companies are forced to move for safety reasons.
In the regions where miner activity is high, the situation may improve in September when the rainy season ends. However, at the moment, many mining pools are still disconnected from the bitcoin network due to the risks associated with floods. According to Chinese media reports, the country has already received a record amount of rainfall this year.