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Bitcoin mining is an energy intensive process. The sheer hashing power required for profitable mining has got miners looking for the best mining equipment out there. While an investment in the mining equipment is a one-time affair, operating it is a different story altogether.

Rows of mining equipment operated continuously over time leads to mounting operational costs. Apart from the space, the cost includes electricity charges for running the mining hardware and the air conditioning units to maintain optimal conditions within the mining centers. If the costs are too high, it will eat into the margins of the Bitcoin miners, rendering the whole operation ineffective.

Cryptocurrency miners have increasingly started to explore alternative energy sources and cold climates to cut down on the energy costs. The Sichuan province in China is one such place that suits the miners’ requirements.

According to a Chinese publication, the electricity costs in Sichuan province is much lesser than other locations in the country, which makes it the Bitcoin mining hotbed in the region. The publication cites the example of Tianjia, a network company in Mabiana Yi autonomous county within Sichuan. The company is said to own over 1500 units of Bitcoin miners that run round the clock to churn out the most popular digital currency.

The mining centers are keeping their overhead costs low by creating their setup within hydroelectric power stations, which are abundant in the region. These installations are provided with adequate security to ensure the safety and uninterrupted operation of the mining equipment.

The increased mining activity in Sichuan province has made it the largest consumer of Bitcoin mining hardware in the country. Kangding, on the western edge of Sichuan, is the home of over 20 Bitcoin mining companies. The output of an active mining center in the region goes up to 10 Bitcoin per day, which makes it a profitable venture at the time when the digital currency’s price has exceeded $1100.

However, the profitability of Bitcoin mining in the Sichuan region is said to be seasonal as the energy costs rise during summer. At the same time, during the rainy season, these mining centers risk flooding due to increased water levels.

Ref: People.cn | Image: NewsBTC

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