In the enigmatic world of Bitcoin, there exists a specialized process called "mining"—quite literally, digging for digital currency. Large clusters of mining machines congregate in facilities aptly named "mining farms."
Why Sichuan's Remote Mountains?
Nestled deep within Sichuan's mountainous terrain, thousands of Bitcoin mining machines operate around the clock, drawing power from local hydropower stations. Key reasons for this geographical preference include:
- Low Electricity Costs: Hydropower in rural areas cuts operational expenses by half compared to urban rates.
- Cooler Climate: Natural ventilation reduces overheating risks for high-performance machines.
- Noise Management: Remote locations mitigate noise pollution from 24/7 operations.
Inside a Mining Farm
At Tianjia Network's largest facility near the Bajiao Creek Hydropower Station:
- 1,500 ASIC miners buzz incessantly, generating ~95 decibels of noise—equivalent to a chainsaw.
- Industrial fans create wind tunnels to dissipate heat, critical for maintaining hardware efficiency.
- Each day, the farm yields approximately 10 Bitcoin (valued at ~$600,000 as of 2025).
Local residents, initially unfamiliar with cryptocurrency, now participate—some even running small-scale mining setups at home.
The Mining Migration Challenge
A unique hurdle emerges during dry seasons (November–April):
- Electricity Shortages: Hydropower output drops, doubling costs.
- Seasonal Relocations: Farms migrate miners to coal-powered stations in Xinjiang or Inner Mongolia.
- Logistical Risks: Treacherous mountain roads pose hazards like landslides during equipment transport.
"Wherever electricity is cheapest, we go. Like beekeepers, we follow the resources," explains Lei Ke, a farm operations manager.
Industry Trends and Adaptations
- China Dominates: Hosts ~70% of global Bitcoin mining hash rate.
- Diversified Energy Use: Farms now leverage wind/solar in Qinghai and coal in Ningxia.
- Regulatory Awareness: Locals stay updated on policies (e.g., China’s 2021 mining ban) due to market impacts.
FAQs
Q: How much does it cost to mine 1 Bitcoin in Sichuan?
A: ~$3,500–$5,000, primarily driven by electricity at $0.03–$0.05/kWh.
Q: Why are mining farms so noisy?
A: Thousands of cooling fans run simultaneously to prevent ASIC chips from overheating.
Q: What happens during a Bitcoin price crash?
A: Farms may pause operations if mining rewards don’t cover electricity costs (breakeven is ~$25,000/BTC).
Q: How do locals benefit?
A: Jobs in maintenance/logistics; some invest mined Bitcoin during bull markets.
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