Bitcoin Halving Sparks Mining Shake-up: Up to 20% Hash Rate Drop Expected

After the Bitcoin halving, up to 20% of the current hash rate for Bitcoin could go offline. The block rewards will be cut in half, causing only the most efficient mining rigs to remain.

The eight ASIC miner models have eradicated nearly 70% Bitcoin hash rate, as per the latest Galaxy analyst mining reports.

According to the analysts, the breakevens for different ASIC models are highly sensitive to Bitcoin price and transaction fees as a percentage of rewards. As a result, they estimate that approximately 15 to 20% of the network’s hash rate that comes from ASIC models could potentially go offline.

According to Galaxy’s estimates, the older mining rigs such as Bitmain’s S9, Canaan’s A1066, and MicroBT’s M32 models are likely to be shut down. However, about half of the MicroBT M20S and Bitmain S17 models are expected to remain operational.

Almost all older models may go offline, but Canaan’s A1246 and both S19 models could remain online according to Galaxy’s predictions.

Miners who use older and less efficient machines may likely have customized firmware to increase their rig’s output and efficiency. Some miners may choose to sell their rigs to others who have cheaper power costs instead of shutting them down.

There is also speculation that miners using the latest S19 models may not be able to generate profits and may choose to upgrade by purchasing older mining rigs from other miners.

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