China Confiscates 600 Computers For Mining Bitcoin
(Kitco News) - Chinese authorities seized 600 computers used to mine bitcoin after a massive power surge was noticed in the local grid, according to media reports.
“[It was] the largest power theft case in recent years,” state news agency Xinhua quoted police as saying.
The seizure took place in the city of Tianjin, located in northern China. And police also confiscated “eight high-power fans,” the news agency added.
First reports of the incident were published last week, but it was unclear when the police seized all the equipment.
One person was detained in connection with the case and five others are still being investigated, Xinhua said.
China began its crackdown on cryptocurrency mining last year, but it is unknown how much equipment was confiscated since then.
According to a Reuters report, China’s local governments were given a free pass to dictate and limit power usage of bitcoin miners.
#Bitcoin To Tumble To $900 And #Silver To Climb 30%, Bloomberg Intelligence Says https://t.co/rqaXqMu1PB pic.twitter.com/YRhsidtQeL
— Kitco NEWS (@KitcoNewsNOW) April 5, 2018Cryptocurrency mining is energy-intensive and requires a lot of computer power, which is why digital miners usually choose a location with cheap power.
China is one of those places, where both power and hardware are not expensive. A report conducted by Elite Fixtures in February showed that China is among top 20 most affordable destinations worldwide to mine bitcoin — costing only $3,172 to produce one bitcoin.
This presents the miners with a significant return as one bitcoin is currently being traded for over $9,000.
By Anna GolubovaFor Kitco News
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agolubova@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.