Bitcoin Hash Rate Faces Potential 20% Offline After Halving – Galaxy Digital
According to a report by Galaxy’s mining analysts, the upcoming Bitcoin halving could result in up to 20% of the current hash rate going offline. The Bitcoin halving will reduce block rewards by half and only the most efficient mining rigs will be able to continue operating. In 2023, eight ASIC miner models accounted for over 70% of the Bitcoin hash rate. The analysts estimate that between 15-20% of the hash rate generated by these models could come offline as a result of the halving.
Galaxy’s prediction is based on the analysis of future power prices and the breakeven point for mining rig models. With the halving set to cut rewards from 6.25 BTC to 3.125 BTC per block, transaction fees making up 15% of rewards, and a Bitcoin price of $45,000, the mining rigs’ profitability was calculated. In the more conservative scenario, older models such as Bitmain’s S9, Canaan’s A1066, and MicroBT’s M32 would be shut down. About half of MicroBT M20S and Bitmain S17 models would remain operational. These five models contributed around 15% of Bitcoin’s hash rate in 2023.
Newer and more popular models such as the Antminer S19 and S19J Pro, which accounted for over half of Bitcoin’s hash rate in 2023, are expected to survive. Canaan’s A1246 is also likely to continue operating, although a small percentage may go offline in regions with higher operational costs. In a worse case scenario, most older models could go almost completely offline, but Canaan’s A1246 and both S19 models may still hang on.
Galaxy’s estimates are subject to certain factors. Miners with older and less efficient machines may use custom firmware to improve efficiency, and some mining rigs may be sold to miners with lower power costs instead of being shut down. Miners using the newer S19 models may find it unprofitable to continue operating them, leading to the possibility of older models being bought as upgrades.
The Bitcoin halving is scheduled to occur at block number 840,000, which is expected to be mined around April 20th.
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So much uncertainty with Bitcoin mining these days. Is it really worth the hassle anymore?
Wow, the Bitcoin halving could have a huge impact on the hash rate! This report by Galaxy’s mining analysts is fascinating! It’s interesting to see that up to 20% of the current hash rate may go offline as a result of the halving.
The Bitcoin halving is just around the corner! I’m curious to see how it will affect the price of Bitcoin and the overall stability of the network. It’s always interesting to witness these major events in the crypto world.
The Bitcoin halving is happening soon, and it’s a significant event for all crypto enthusiasts. The analysis by Galaxy’s mining analysts gives us valuable insights into what we can expect. 💡 Can’t wait to see how everything unfolds!