Bitcoin network hashrate appeared to dip June 27, coinciding with reports floods in China had inundated and destroyed “tens of thousands” of miners.
Machines ‘Beyond Repair’
According to local Chinese media reports, the floods occurred principally in the country’s western Sichuan province, an area which accounts for around 70% of China’s mining output.
Despite claims government authorities are attempting to crack down on the country’s mining industry, China still accounts for 70% of international activity.
“At present, there is no specific data on the losses at the Sichuan mines,” Golden Finance reports showing photographic evidence of the destruction.
However, from the perspective of the area affected by the disaster, at least tens of thousands of miners have been flooded. From the photographs, these miners are apparently defunct and are likely beyond repair.
Bitcoin seemed to feel the effects of the knock-out almost immediately, data from Blockchain highlighting a sharp reduction in hashrate around the time the floods hit. This soon corrected, suggesting other miners were picking up the slack.
Golden Finance meanwhile claimed that the “whole network’s computing power had dropped significantly” beginning June 24…