Fire engulfs Bitcoin mining farm burns destroying $10m of crypto mining equipment

Major Chinese mining firm burns down

Fire engulfs Bitcoin mining farm burns destroying $10m of crypto mining equipment
                                

A fire has engulfed a major Bitcoin (BTC) mining farm in China, destroying millions of dollars worth of equipment, The Independent reports.

Video of the fire at a data centre operated by Innosilicon appeared on social media. Dovey Wan, a prominent Chinese crypto observer and founding partner of the crypto firm Primitive Ventures, estimates that the total cost of the damage was $10m.

Innosilicon has not confirmed that the fire took place at its facilities and has not responded to any requests for commentary.

Some mining experts have suggested that the fire might have contributed to the resurgence in the price of Bitcoin, after last week’s dramatic drop.

The Poolin farm, another major Chinese mining farm, was destroyed by floods in Sichuan three months ago.

Both Innosilicon and Poolin are licensed, however China has vowed to clamp down on all unlicensed cryptocurrency mining operations. It is not clear what measures they are taking.

New units of cryptocurrencies are generally generated through solving complex mathematical problems. This process is termed mining. It requires vast amounts of computer processing power and is very energy intensive, hence the fire risk from equipment.

Recent estimates suggest that the mining network that supports Bitcoin uses as much energy the entire nation of Ireland.

Firms in Iceland and Norway are pursuing clean energy mining solutions, however the majority of operations are based in China, where coal-generated electricity dominates.

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