Coronavirus arrives in Sichuan
Coronavirus is still expanding in China and recently it was reported that the city that owns the most mining farms, Sichuan, has already been hit by the virus.
Uncertainty for the Coronavirus
The Coronavirus, which appeared in Wuhan City, arrived in Sichuan Province, where the largest concentration of cryptocurrency mining in the world is located. The reason why Sichuan is so attractive to miners is the excess energy produced during the rainy season. Analysts are concerned about the possible negative impact this situation may have on the price of Bitcoin.
The city of Sichuan hosts approximately 50% of all the hashrate of the Bitcoin network. Official reports report that 108 cases of Coronavirus infected in the region have already been confirmed and that the first death related to the disease recently occurred. The problem is exacerbated because the Chinese government does not consider the Sichuan region a priority. A Sichuan government official told Al Jazeera television channel that: "There are priorities in our spending budget and none of us could expect such an emergency. So I think that sometimes the supply reserve may not be ideal."
No mining company has ceased its activities, however they are paying close attention to how the Coronavirus problem evolves in the region and does not rule out the possibility of firing employees and reducing operations if the situation in Sichuan worsens. Sichuan is still in the dry season and many companies intend to establish new mining farms for the rainy season, however everything is conditioned to what happens with the Coronavirus.