Since December 15, 2018, the hashrate between Bitcoin Cash and Bitcoin Core has increased dramatically over the last two-months. Numerous reports have revealed that many Chinese miners controlling large amounts of SHA256 havehrate are establishing themselves in Sichuan. Miners can receive as high as 0.08 yuan a kWh, or $0.01 a kWh, during the dry season.
Chinese Mining Operations Return to Sichuan for Cheap Hydro Power
Numerous reports have revealed that Chinese miners are returning to Sichuan in an effort to find cheap hydroelectric energy. Following the dramatic hashrate fall in December, when the SHA-256 havehrate between BTC/BCH dropped by approximately 30 percent from its peak, the migration has occurred. Chinese miners moved their operations to China’s other regions and countries during the dry season of Sichuan. The fiat value of cryptocurrency was generally much higher than the Chinese currency. It was estimated that 70% of SHA-256’s hashrate came from China, and that 75% of the hashpower derived in Sichuan from Chinese facilities was sourced from China. When Bitcoin and other coins went up in price, large Chinese mining enterprises ventured to other regions and sought subsidies from local governments.
Chinese miners flock from China to Sichuan during the Wet Season for cheap electricity from Block activist group
Sichuan in China, at over 3,000m, is well-known for its rivers, and the colorful pools created by calcite deposits. Since years, many of these rivers and waterways have supplied energy to hydroelectricity plants. Additionally, bitcoin mining facilities are located in this mountainous region.
Eva Xiao (Chinese journalist) reported in August 2017 that large Bitcoin mines were partnering for cheaper electricity from State Grid. This strategic move was made because, unlike the dry and rainy seasons in Sichuan’s Sichuan, government partnerships allow for stable electricity rates. Bitmain achieved this by purchasing electricity from the State Grid in exchange for the company’s Ordos mine in Inner Mongolia. The cost was $0.04 perkWh. Xiao explains how Bitmain gave Ordos the right to be taxed in return. Regional reports, published Jan. 21, 2019, indicate that there has been an influx of Chinese miners returning to Sichuan in the wet seasons. China-based publication explained recently that hydroelectric cost in Sichuan during dry seasons is three times greater than in the wet.
Lylian, a local reporter noted that the tragedy would be over soon after April’s rainy season. “The 1,419 river systems in the region will soon be awakened to drive the 3,267 hydro-plants — Many bitcoin mines are set to resurface as they will have sufficient and cheaper power supply.”