Police in east China’s Anhui Province detained a Bitcoin miner named Ma who allegedly stole 150,000 kW hours of electricity in order to fund his unprofitable mining farm.
Cryptocurrency mining is an energy-intensive process wherein miners are rewarded with newly mined coins for creating blocks of validated transactions and adding them to the blockchain. Profits are earned when the value of the mined coins exceed the electricity and computing power costs.
The press wrote,
“Hanshan County authorities decided that the power meter for its supposed cryptocurrency mining operation was short-circuited, which was probably an effort to dodge the power invoice ,”
Ma confessed that his idea of becoming a miner-millionaire failed when he realized that the bills exceeded his income, as Ma soon found that the daily power bill was 6,000 yuan, or $927. Law enforcement was called when the local power grid operator reported abnormal electricity usage.
The police also seized over 200 of his computers which were used to mine Bitcoin and Ethereum.
The authorities confirmed that the defendant hadn’t recovered his/her investment before he had been captured by the police.
“Bitcoin and ethereum mining are greatly power-consuming procedures based on high-speed computers. Bitcoin and ethereum are distinct variations utilizing the blockchain technologies ,”
It is well-known that China is home to many Bitcoin miners. The data from 2017 shows that 50 to 70 percent of Bitcoin mining activity takes place in this country. It has not been researched yet how the Chinese government’s decision to prohibit cryptocurrency trading, affected this market, yet it is already known that some local miners plan to move their business to Canada.
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