Thunderstorms in China Destroys Thousands of Crypto Mining Equipment

China – In the aftermath of last week’s unceasing thunderstorms that swept throughout the Sichuan province, adversely impacting thousands of locals and resulting in massive economic losses, China’s Economic Daily News has forecasted a short-term outpour of orders from the crypto mining sector, as the province reportedly holds over 70 percent of the mining systems in the country.

According to a recent report, in the wake of the natural disaster that has hit the Chinese province last week, there has been a significant 30 percent decline in the overall mining hash rate across the globe.

As detailed by the National Meteorological Center, among the provinces that have been struck by heavy rainfalls from Thursday until Sunday include Hubei, Sichuan, and Jiangsu.

Over 48 cities and 250,000 people have reportedly suffered from last week’s thunderstorm, albeit no news of death nor missing people have emerged so far. The disaster has since caused over 733 million yuan or $111 million worth of estimated economic losses.

In an effort to safeguard the welfare of locals, the National Meteorological Center has cautioned against outdoor activities to reduce the risk of potential casualties from flash floods and landslides.

According to Chinese news outlet Golden Finance:

“The Sichuan province had become a concentrated area of cryptocurrency mining activities due to its abundant amount and cheap electricity tariffs. The floods damaged tens of thousands of miners.” 

In addition, statistics also estimated that over 70 percent of the crypto mining equipment shipped across the globe originate from China. As Golden finance added:

“Just before the floods stroke, Sichuan mining farms received a large number of mining escrow orders.”

Furthermore, the news outlet also noted that most miners set up operations in rural mountainous regions where lifestyle is considered “relatively simple.”

As Golden Finance further posited, there appears to be an indirect correlation between the marked reduction of global mining hash rate and the recent natural disaster in China. According to the news outlet, between June 24 to June 28, the entire network’s power has seen a massive drop concomitant with the Sichuan thunderstorms, although it is difficult to accurately gauge the BTC hash rate for a specific period of time.