According to a wire report from Agence France-Press, a bitcoin mining operation was busted by the Police in eastern China after a surge in local electricity usage. According to the investigators of the incident, the miners stole electricity from a local power provider. “In value, it is the largest case in the amount of electricity stolen that Jiangsu has cracked since the founding of New China, and a rare sight in the whole country,” Zhenjiang police reportedly said to AFP.
By the alleged theft, the group of miners caused a misappropriation of nearly 20 million yuan ($3 million) in electricity costs. This was done with the use of about 4,000 “mining devices,” that were eventually seized by the police. Also alleged by the investigators is that more than 20 people participated in this particular mining operation. An investment platform called Coinshare, published a report that found 50 percent of the global bitcoin computing power was located in southern China. Apparently, in China, Bitcoin mining is still quite popular.
The bitcoin software automatically adjusts its mining difficulty, approximately every 14 days depending on the amount of computing power in the network. Added to that, bitcoin’s surge in price to around $12,000 on Friday caused the difficulty of the mining algorithm to reach record highs.
Bitcoin mining difficulty had reached a new record high above 7.93 trillion as at last week of June. With this level, another 300,000 mining machines could be activated to meet the hashing power needed. By August, the total hash rate this year could peak to a threshold of 70E Hash per second (H/s) as against the 56.77 EH/s in June.
For clarity; mining difficulty falls when fewer machines are used to solve math problems to earn the next payout of newly created bitcoin and on the other hand more computers or machines, mining difficulty rises. This high level of difficulty may have moved these group of miners to direction of their crime ending in the police bust.
Credits- David KuhnJOIN OUR COMMUNITY