A Glance of Bitcoin Mining Farms Hidden in China’s Sichuan Deep Mountains
A recent flood in China’s Sichuan has led media and investors in the cryptocurrency sector to overstate its impact on the hashrate of bitcoin.
Though analysts have claimed Sichuan floods had little impact on the bitcoin hashrate, floods there have uncovered the hidden bitcoin mining farms and reclusive living miners lead in deep mountains of Sichuan, known as “bitcoin mining capital of China”.
Literally, Sichuan means “four rivers” in Chinese. According to incomplete statistics, more than 6,600 hydropower stations are currently operating in Sichuan province. Featured by abundant hydropower and vast expanse of mountains, Sichuan thus becomes one of the best places for bitcoin mining.
Deep in China’s Sichuan mountains, miners are chipping away at complex mathematical puzzles in hopes of unlocking the digital gold – bitcoin.
These miners have picked their location wisely especially after the country demanded to have bitcoin mining operations orderly exit as part of a wider move of ICO ban released last September.
They lay their eye on the deep Sichuan mountains which enjoy a cool year-round temperature and cheap electricity provided by small-scale hydro-electric facilities but few people will set their foot there, ranging from $1.5 to $4 cents per kWh.
Some even build their mining farms inside hydropower stations, like the blue-roofed mining factory in the picture above. 3,000 mining machines are operating in it, contributing 1 million yuan ($148K) electricity cost per month, totaling 12 million yuan ($1.8 million) a year. Actually, such mines with a capacity of 3,000 mining machines are small-scale.
The owner of this mining farm used to operate an internet café in the metropolis Shanghai. Seeing its dim prospect, he joined the great mining army. For him, it was easy to transfer from a webmaster to a miner who takes care of mining machines.
“A miner never speculate cryptocurrencies, and a speculator never mine cryptocurrencies.” this is a consensus reached in the miner community. A miner said, “I never buy a (crypto)coin, and give no care for its price.”
The mining farm looks messy and dirty with all wires hanging together and mining equipment roaring. Miners there have few human contact, no stores, no cafés, no bars, but only WeChat, games and soap dramas for company.
The mine under construction in the picture is expected to hold 100,000 mining machines, which will cost 360 million yuan ($53 million) a year for electricity alone.
It seems that regular bitcoin mining farms are not affected by the the escalated clampdown from the country’s regulators and the recent news that another bitcoin mining base Xinjiang demands to eliminate illegal bitcoin mining farms.