The hashrate between Bitcoin Cash (BCH), and Bitcoin Core (BTC), has increased substantially over the past two months since the December 15th 2018 low. Many reports state that many Chinese miners, who control a significant amount of SHA256 hashrate, have recently set up shop in Sichuan. Miners can earn as much as 0.08 Yuan per kWh during the wet season, or $0.01 per hour.
Chinese Mining Operations Return to Sichuan to Grab Cheap Hydro Power
Many reports state that Chinese miners have returned to Sichuan to get cheap hydroelectric power in recent weeks. This migration occurred after December’s significant hashrate drop. The SHA-256 hashrate of BTC and BCH fell by around 30 percent from their all-time high. Chinese miners moved to other areas in China during the dry season in Sichuan. This was because the fiat value for cryptocurrencies was higher in China than in Sichuan. In 2015-2016, more than 70% of SHA-256 hashrate was derived from China. 70 percent of hashpower derived from these Chinese facilities came from Sichuan. However, as Bitcoin and other coins became more expensive, large Chinese mining companies began to look for electric subsidies from local governments.
Chinese miners flock to Sichuan in search of cheap electricity during the wet season of Block activist group
Sichuan, China is home to more than 3,000m of elevation. It is known for its rivers and colorful pools made from calcite deposits. The region is home to many rivers and waterways that supply energy to hydroelectricity plants. Bitcoin mining facilities have been operating in the mountains for many years.
Eva Xiao, a Chinese journalist, reported that large bitcoin miners were partnering up with Chinese governments to get cheaper electricity from State Grid. Government partnerships offer static electricity rates, which are much more stable than the wet and dry seasons in Sichuan. Bitmain made this happen with its Ordos, Inner Mongolia mine. It purchased electricity from the State Grid at $0.04 per kWh. Xiao explains that Bitmain paid $0.04 per kWh to the State Grid in exchange for allowing the Ordos mine tax. Regional reports released on January 21, 2019, state that a large number of Chinese miners have been returning to Sichuan during the wet season. China-based publication, recently reported that hydroelectric costs in Sichuan’s dry season are three times more than those of the wet.
Lylian, a local reporter, noted that “this tragedy will seem to end as soon as it rains in April.” “The 1,419 rivers of the region will soon awaken to power the roaring 3,267 hydro plants — Many bitcoin mines will resurrect as they have more affordable and adequate power supplies.”