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Because of the low cost of hydropower, there are 5 million bitcoin mining machines in the mountains of Sichuan . Therefore, a rumor in the industry is that 70% of Bitcoin's computing power is in China, and 70% of China's computing power is in Sichuan.

Translated from

Sichuan 25,000 mining army flees: a flood loss, millions in bitcoin mining hardware destroyed in China  四川2.5万挖矿大军:一场洪水亏损上亿 最怕停电和孤独|中国的比特币门户

  Just like the butterfly effect, a recent torrential rain swept through the mines in the mountains of Sichuan, which led to a 30% reduction in global bitcoin computing power .

  25,000 people, hidden in the mountains, lived a lonely life of "Ru Mao drinking blood." After the rainstorm, many mine owners ran the road, mining machine business, no longer profiteering industry, they are caught in an unprecedented survival dilemma.

  Sudden rainstorm

  In June of this year , the rainfall in Sichuan was a bit surprising. As a member of the mining army, Li Yang is paying close attention to the changes in the weather. In addition to the Dragon Boat Festival, Li Yang drove out of the heavy rain to buy food. At other times, Dashui blocked them in the mountains, and it was difficult to move.

  As the rain grew, the hydropower station cut off the power supply to the mine. A blackout means that the mine can no longer operate - for the mine owner, the news is like a nightmare. The rain is not ready to stop, Li Yang eyes, the water level in the mountains is getting higher and higher.

  At 10 o'clock on the 26th, the flood suddenly came and the water level soared. Several mines with low altitudes have suffered, including large mines with tens of thousands of machines. Liyang’s mine is also included.

Thousands of machines damaged in flood.

  "We only have two people, but there are more than 2,000 mining machines. We can't help but be drowned." Li Yang said.

  After 3 days, more than 2,000 mining machines were rescued. The mining machine with a cost price of 5,000 yuan has now become a pile of scrap iron.

  A heavy rain caused Li Yang to lose 10 million. Two or three manufacturers of cloud computing power, but they saw the business opportunities, flocked to the mountains of Sichuan to find scrap mining machines.

  "50 yuan a unit." They bought these mining machines at low prices and prepared them as accessories for their mining machines.

  It is said that the heavy rain in Sichuan caused 20,000 mining machines to be flooded, with a loss of more than 100 million yuan.

  Some people in the industry speculated that it was because of this heavy rain thatthe ups and downs of the bitcoin price in early July.

  The torrential rain in the mountains of Sichuan has reached the point where it can affect the price of Bitcoin?

  Due to heavy rains, large-scale mines in Sichuan were cut off. By 28th, the computing power dropped to 34.7EHash/s, and the loss was about 30%. Therefore, it is conservatively estimated that Sichuan has more than 30% of the computing power of Bitcoin.

A rumor in the industry is that 70% of Bitcoin 's computing power is in China, and 70% of China's computing power is in Sichuan.

  Sichuan, why is it the most important coordinate in the Bitcoin world?

  Mining army

There are probably more than 25,000 people in the mining army lurking in the mountains of Sichuan . In the words of the mine owner Li Wei, they lived a life like "the hair of the hairy hair."

Sichuan has the most abundant hydropower resources in the country. There are more than 20 hydropower stations in the Lancang River Basin. In the period of high water, the cost of electricity in Sichuan can be as low as 0.08 yuan, while the cost of electricity in thermal power is 0.28 yuan. The difference between the two is three times.

  This is why the mining army is rushing to Sichuan.

  "Electricity is directly pulled from the hydropower station. There is too much electricity left in the hydropower station over there, and it can't be used at all," said a mine owner in Chengdu.

  The low price of water and electricity has attracted the nation's bitcoin mine owners to build in the mountains of Sichuan.

  As a result, there is a saying in the industry: Sichuan has become the natural"mineral capital" of Bitcoin .

The mine is not as mysterious as we think.

  In the vicinity of the hydropower plant, you can see a blue color steel plate room, away from tens of meters, you can hear the roar of the machine room. It was an air conditioner that was operating in Bang. Pushing open the iron gate, you can see a large computer room a few meters high. It is a mining machine. There are countless small lights in the middle, like the blue and cold eyes in the dark.

  "The first time I saw it, I thought I came to the shooting scene of the Matrix, especially the science fiction." Li Wei said.

  A 5,000 square meter mine can hold 40,000 mining machines. In the deep mountains of Sichuan, these large mines are like beasts that are constantly creating wealth.

  Wealth has formed a cohesive force to attract more players to enter.

  Li Yang is one of them.

  Li Yang is a native of Chengdu who worked in Apple before. Because he felt that he was boring at work and did not want to earn a salary, in 2017, he joined the mining machine hosting army and opened his own mine next to a hydropower station in Aba, Sichuan.

  “This business is very simple. Many people want to mine, but the cost of operation of a single mining pool is too high. Customers pay for the mining machine and then host it. We use the APP to check the status of the mining machine at any time.” Li Yang Say.

  This business, Li Yang has long been very clear: power escrow costs 0.45 yuan / kW ~ 0.5 yuan / kWh, a thousand S9 mining machine can dig up 14,000 bitcoins per day, in addition to cost electricity costs 10,000, You can earn 4,000 pieces a day.

  So down, it is 1.46 million a year . Apart from other expenses, a small mine that hosts 1,000 mining machines can earn 1 million a year. At most, he has 5 mines and the annual income is 5 million.

  In the deep mountains of Sichuan , there are about 5 million mining machines and more than 600 large and medium-sized mines with more than 2,000 machines. And small mines are too difficult to count.

  But it is not so easy to earn this money.

  "Do you know what I am most afraid of? It is power outage and loneliness." Li Yang said that power outage means losing money, but it is more terrible and more difficult than losing money, but it is lonely.

  Going out of the mountains, you can't see the forest in the side, except for the birdsong, only the roar of the computer room.

  Every day with him, only WeChat and games.

  "People don't have money, they are not as good as ghosts. On this mountain, money is not as good as ghosts." Li Yang once wrote such words in a circle of friends.

  Hard to survive

  The days when the miners have been moisturized have basically ended, and they are caught in an unprecedented production dilemma.

  This year's Sichuan, the torrential rain was surprisingly large. Just a few days ago, Sichuan Province launched the Class II flood control emergency response for the first time in recent years . The Sichuan mine will usher in a power outage. A large number of miners decided to move the mining machine from Sichuan to Xinjiang and began the largest computing power migration in history.

  A Xinjiang mine owner said that he had 800 sets of 1,000 mining machines in hand , all of which were shipped from Sichuan.

  Sichuan is losing its core strategic position as a “mineral capital”. The mining machine business is no longer a profiteering industry.

  The increase in mining prices, the increase in electricity tariffs, and the excess of computing power have led to an unprecedented increase in the difficulty of mining.

  Some small mine owners, the cost of digging a bitcoin, is close to $6,000. The current price of bitcoin is only about $6,300, and the profit is as thin as paper.

  The world of bitcoin's computing power is forming an extreme monopoly and squeezing small mine owners.

  The mining machine business is being monopolized by Bitian and Avalon mining machines, and the two of them add up to 87.5% of the entire Bitcoin world .

  "Small mine owners can't compress the cost, and they don't have much right to speak. Others take 2 hairs 8, you can get 3 hairs 3, you can't play." Angkor, who works at a large mine, said.

  Mining the industry, after all, will be harvested by the giants. Bitcoin has also begun to launch its own managed mining machine service, and small mine owners simply cannot compete with the giants. The last bit of living space for small miners is being deprived.

  Li Yang said that he is ready to withdraw the customer's money and withdraw from the market. "It is really impossible to do it."

  And a large number of mine owners have been forced to the corner and start running.

  "Every month, the custodian will pay the electricity fee of 500 yuan per month to a mine owner in advance, and the mine owner will run the electricity bills." Li Yang said that many small mine owners are really unable to make ends meet. Suddenly, it disappeared from the mountains.

  After the rainstorm, there was a mine run in Sichuan .

  "It was crushed by the giants and suffered from natural disasters. It can't be done." Li said.

  Migration, running, and mining are facing the most difficult survival dilemmas.


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