A Bitcoin Miner in China is sentenced to 3.5 Years in Prison for Stealing Train Network’s Electricity
Chinese Bitcoin miner gets imprisonment for three and a half years and a fine of 100000 yuan, around $14400, after he pled guilty for stealing train power in order to feed his mining task, as reported by local media outlet The Paper.
The Datong Railway Transport Court in China’s Shanxi province condemned Xu Xinghua for stealing power from Kouquan Railway between November and December last year. Xu utilized the ability to run the 50-bit mining machine and three electric fans in his leased apartment. During this point of time, the miner stole about 104000 yuan worth of electricity from the train network power lines and mined about 3.2 Bitcoins, which were worth around $17300 in the month of April 2018.
Though the police assessed Xu could have earned more from his mining task as the cost of Bitcoin came to about $20000 last year in the month of December. Agents pegged his profit at nearly $6500 at current costs.
Bitcoin mining rigs consume a great deal of power. As per DigiConomist, the worldwide power consumption of Bitcoin mining reached around 48.5 TW/h last year. The electricity price accounts for over 70% of the value of Bitcoin earnings.
Most of China’s virtual currency mining pools is determined in Sichuan that’s rich in water resources. The area has cheap hydropower and a cool atmosphere in addition to a low population density.
The advantages of mining have nearly plateaued because of the reduction in Bitcoin costs this year and the challenges related to mining. It’s been calculated that when the unit price of Bitcoin drops to less than $6300, mining turns into a losing recommendation.
In September, the People of Bank of China issued a warning to the investors regarding the dangers connected to Cryptocurrencies and Initial Coin Offerings that are prohibited in China.