Crypto mining activities have often been called out because of their effects on the environment. However, in recent times, the environment has hit back at crypto mining facilities. Recent floods in Sichuan in China and heat waves in some regions of Europe made the global hash rate drop briefly, reports Financial Times. The situation in China is grave as violent floods have destroyed the homes and crops of thousands of people.

Mining farms in the region are also engulfed in water, and miners are running away with whatever equipment they could salvage. It is to be noted that China still dominates the cryptocurrency mining market, even though the government has done its utmost to drive the industry out of its boundaries.

The founder and CEO of social trading platform Carboneum, Max Kortakul, said:

“The pictures of the flooding in Sichuan are alarming and give the impression that the bitcoin hashrate must surely have taken a hit.”

China still mines anywhere between 50 and 70 percent of the world’s total Bitcoin supply, as well as a host of other cryptocurrencies. A natural disaster could damage its dominance in the industry and affect global hash rates and crypto prices. Analysts at Morgan Stanley estimate that floods in Sichuan could affect global Bitcoin mining activity by as much as 8 to 10 percent.

The government in Beijing is keen on driving out miners, especially because of the rising power demands from miners. According to data from Digiconomist, electricity used to mine Bitcoins globally could be used to power over 6.5 million households in the US.

China, Russia, Iceland, and Venezuela are some of the most popular spots for crypto mining activity. Cheap power and easy availability of equipment are two of the major reasons behind this. As for China, the two largest Bitcoin mining equipment manufacturers of the world, Bitmain, and Canaan, are both Chinese companies. After the government tried to crack down on miners, they reportedly moved to farther corners of the country, some even moving to nearby countries.

According to some experts, Chinese dominance in the sector is overhyped. Take the example of Aaron McDonald, co-founder and chief executive of an app store for decentralized apps called Centrality. He believes that the dip in global hash rate was not just because of Sichuan floods. European heat waves and the falling price of Bitcoin are equally responsible for the dent.

President of the Bitcoin Association in Hong Kong, Leo Weese said that some charts that predicted a 30-percent drop in hash rates are basing their guesses on “how many blocks have been found in a day.”

Trading platform Wyre’s director, Neil Woodfine, dismissed the Chinese connection altogether, calling the dip “no more than standard variance.”

Several pictures circulating on social media platforms show damaged GPUs after the floods. Woodfine said that only Bitcoin needs to be mined on specialized hardware as other currencies mostly use gaming GPUs.

The jury is still out.

Weather Disruptions Threaten Crypto Miners’ Profits was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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