Cryptocurrency Mining Problems
Ever since the rewards of Cryptocurrency mining have been reported, hundreds – in fact probably thousands – of people worldwide have tried their luck with mining just to get their piece of the action and make a quick buck. As we are all well aware, the major problem that lies with Cryptocurrency mining is the fact that it is a complete and utter nightmare for the environment and uses a ridiculous amount of power for every single second that mining is taking place. As has been highlighted on many occasions, the daily power consumption required for bitcoin mining alone is equal to that of Iceland, at the moment. This comparison is changing quickly and all too soon there will be another larger country used. There is no sign of this slowing down either as more and more mining farms are set up to make as much money as possible.
And in China
And as power prices continue to increase the amount of fraudulent cases will also continue to rise all over the world with Japan having a big hit only just recently. It is now the turn of China with police striking gold in the East of China at a private house. The police had a wonderful result seizing 200 computers that were being used to mine Bitcoin and Ethereum. The private factory was illegally using the national power grid to mine and police were soon on the case of the criminal. Not only had the criminal set up the illegal operation but he had also short-circuited the meter in his house to ensure he was not charged for electricity usage. It has been reported locally that there was 150,000kw hours of power used in a single month. The electricity company involved has managed to work this out from previous records.
The computers were only a recent purchase, and the illegal mining had only been happening for just over a month when the criminal was caught. The individual behind this particular project was hoping to make a small fortune from mining but was devastated when it became apparent that the daily cost of power alone would total over $927. Although the perpetrator knew that he could not afford the power bill charges, he continued anyhow in a bid to make his money from the Cryptocurrency industry. When he was caught, said individual had yet to make any money from his homemade factory.
The Power Company
The possible case was initially reported to police by the power grid supplier who was very concerned about the amount of power being consumed at the illegal factory’s address. Police were not slow in coming forward and raiding said address.
Although China is very keen on taking its Cryptocurrency projects further and making the most of the benefits of this new generation digital economy, the country is extremely strict on illegal activities. It is also very tough on aspects which are not regulated or are identified as high risk. Cryptocurrency exchanges which are not up to the necessary standard have already been shut to ensure those involved in the industry are as protected as much as possible.