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Chinese Floodings Have Affected Bitcoin Mining Processing Power

The processing power of the bitcoin network, that is, the number of operation that the network can make, has gone down considerably since last June 24, when there were great floodings that affected mining Chinese areas, so there is likely a relationship between these two events. This according to an article from a local Chinese source, Jinse.
Mining is the main activity that produces cryptocurrency. Through this heavy energy consumption process, more bitcoin is minted and also the operations that are being done in the blockchain are validated. The miners are machines that are primarily designed to make this kind of calculations to earn a profit fee. The more miners in the network, the safer that the network will be and operations will be resolved in a faster way.
Most of this processing power produced by miners that are located in China; there are reports that estimate that 70% of this power comes from there. The problem is that the Chinese floodings hit badly the region of Sichuan, a region that is known to be a hub for mining companies, hosting more than 70% of the miners in the whole country. The infrastructure of the region was simple and the miners were allowed in facilities that, for the most part, did not have the required equipment to resist a flood of this size.
In some pictures coming from the region, we can see that most miners that were affected by the flooding were totally covered by water, and cannot be repaired. So this problem will be affecting the bitcoin network for quite a while in the future; so we may expect higher transaction fees.
China has banned cryptocurrency trading inside of its borders, but has allowed mining companies to operate without problems if they register with the government and pay taxes; so China has become a mining haven because of the relatively low energy prices also.

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