Huge Bitcoin Mining Farm Burns Down in China, Destroys $10M in Computers
A fire has destroyed around $10 million worth of equipment at a major bitcoin mining farm operated by Innosilicon, reports say.
The blaze happened on Monday, according to bitcoin expert Marshall Long, who posted images of the fire on social media.
While Innosilicon has not confirmed the fire took place, plenty of bitcoin mining experts are speculating about the effects it has had on the market, as The Independent reports.
Some experts say the loss to the bitcoin mining network might have actually contributed to bitcoin's recent price rise, which has seen its value go up by over $500 in the last 24 hours.
Dovey Wan, a founding partner at cryptocurrency firm Primitive Ventures, estimated that the total cost of damages from the fire was approximately $10 million, The Independent reports.
No smoke without fire
Several studies have recently pointed to the damaging environmental effects of bitcoin mining. One suggests that that electricity consumption from Bitcoin mining will be greater than that of the U.S. by 2020.
Another study, published last year in the journal Joule, estimated that Bitcoin networks the world over consumed about 2.55 gigawatts of electricity and would soon reach 7.67 gigawatts.
While some solutions have been proposed, such as using Bitcoin servers to offset heating emissions, there is clearly a bitcoin problem when it comes to the environment — especially as the majority of mining farms are based in China, a country with a poor environmental record.
The fire at the Innosilicon data center isn't the first bitcoin-related disaster to have happened this year in China.
In August, another big mining farm in Poolin was washed away by floods in the Sichuan province.
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