Bitcoin Network Processing Power Because Of The Flood Tergangu Dicina

Bitcoin network processing power, that is, the number of operations that can be performed, the network has fallen significantly since June 24, when a great flood which affected China's mining area, so chances are there is a connection between the two events. According to an article from a local source of China, Jinse.

Mining is a major activity that produces cryptocurrency. Through the process of this heavy energy consumption, the more the bitcoin printed and also operations conducted in blockchain validated. The miners is a machine especially designed to make calculations of this sort to get cost advantage. More and more miners in the network, the more secure that the network will be completed and operating by a faster way.

Most of this processing power generated by miners located in China; There is a report that estimates that 70% of this power comes from there. The problem is China's floods hit areas of Sichuan, an area known as a Center for the mining companies, accommodates more than 70% of miners across the country. The infrastructure of the region is simple and the miners were allowed at the facility which, for the most part, do not have the necessary equipment to withstand the flooding of this size.

In some of the pictures that come from the region, we can see that the majority of miners affected by the flood completely covered by water, and cannot be repaired. So this problem will affect network of bitcoin for a while in the future; so we expect higher transaction costs.

China has banned currency trading crypto in its borders, but it has allowed mining companies to operate without any problems if they sign up to the Government and pay taxes; so China has become the site of mining because of the relatively low energy prices, too.