Unprofitable miners are already leaving the Bitcoin network before the BTC halving

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With the halving expected to happen in just under four hours, unprofitable miners have already started shutting down their equipment, Alejandro De La Torre – the vice president of major mining pool Poolin – said in an interview with Cointelegraph on Monday. . According to his estimates, these miners represent “15-30%” of the entire Bitcoin (BTC) hash rate.

“Mining personnel close [their units] as we speak because they won’t want to do it after the halving – because then they’ll lose money,” De La Torre told Cointelegraph.

Miners leaking now will likely never come back online if they don’t upgrade their gear or find extremely cheap power sources, as the mining reward will be halved once the event occurs:

“All older machines will no longer be profitable unless they run on nearly free electricity or the price goes up 2x or more.”

According to De La Torre, unprofitable mining operations based in China will be the first to stop. The halving will take place early in the morning local time, which is why Chinese operators are now closing profitless units before clocking in.

Hash rate to decline after halving, rebound after?

This shutdown will affect the total hash rate, De La Torre added, since soon-to-be unprofitable units generate “around 15-30%” of that number.

As previously reported by Cointelegraph, Bitcoin’s mining hash rate experienced high volatility before the halving and is expected to drop soon after it takes place – but then could start to bounce back as the next generation of mining machinery will be shipped.

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