With Chinese media estimating that Sichuan’s mining sector comprises 70% of the computing power of both the bitcoin network and the total processing power situated within China’s borders, reflections following the devastating Sichuan floods’ have many insights into the realities of life of a crypto miner in Sichuan.
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Floods Wreak Havoc in Sichuan
According to Chinese media outlet Jiemian, prior to the floods, roughly 5 million mining rigs owned by approximately 25,000 people were situated in Sichuan. The recent flooding in the province resulted in the streets being littered with broken mining rigs, as the entrepreneurs seeking to cash-in on the nascent next boom industry were forced into a state of survival.
Li Yang, a cryptocurrency miner based in Sichuan, discussed his firsthand account of the flood with Jieman, stating that unusually heavy rainfall began to besiege the province in June. Before long, the local hydropower station had cut the electricity provided to many miners – with Li Yang’s being among those to lose power.
At 10 am, on the 26th of June, Li Yang recounts that the water level quickly soared, resulting in the destruction of tens of thousands of mining rigs situated at low altitude – including those belonging to Li Yang. With each of Li Yang’s 2,000 mining rigs estimated to have cost 5,000 yuan each, the floods caused a total loss of 10 million yuan (approximately $1.5 million USD).
Li Yang also recounts that cloud mining companies flocked to Sichuan in the wake of the devastation, “offering 50 yuan a unit” to miners for scrap rigs.
Sichuan Attracts Li Yang
Li Yang is a former Apple employee who moved to Sichuan from Chengdu in 2017,
