Bitcoin’s Mining Landscape Braces for Shift as Halving Could Slash 100 EH/s of Hashpower

Based on a recent analysis, numerous outdated bitcoin mining devices likely powered up in response to the latest uptick in bitcoin’s value. However, with the anticipated block reward halving, it’s projected that around 100 exahash per second (EH/s) of computing power might be disconnected after the event.

Bitcoin Miners Enjoy Revenue Boost, Yet Face Potential Setback With Upcoming Halving

As of this moment, Bitcoin’s overall computing power, as measured by the seven-day simple moving average (SMA) on Luxor’s hashrateindex.com, maintains a steady pace at 596 EH/s, having peaked at a historic high of 628 EH/s on March 12, 2024. A recent analysis featured on theminermag.com explores the possible resurgence of private mining operators.

“With the recent hashprice rebound, even an old mining machine like M21S could be making some marginal gross profits again at an energy rate of $0.07/kWh,” the report notes. “Hence more private mining companies may have plugged in their machines again over the past few months ahead of the halving to squeeze more juice out of their idle older machines while they still can.”

Yet, the analysis further points out that as the halving approaches, outdated application-specific integrated circuit (ASIC) bitcoin mining devices are expected to retire. This scenario hinges on whether the hashprice dramatically increases to 200 petahash per second (PH/s), according to the analysis. If this happens, older-generation miners could continue to see a lifespan.

“Bitcoin’s average hashrate in October was around 450 EH/s and is 600 EH/s in March so far,” the report’s author estimates. The theminermag.com’s report concludes:

If we assume the majority of the hashrate increase since October came from older equipment, then we could see a hashrate correction to the low 500 EH/s levels after halving.

As of March 23, 2024, the hashprice stands at $99.98 per petahash per second (PH/s) per day, marking an increase from its level just a few months back. Additionally, bitcoin mining revenue for March has already eclipsed that of February, despite the month not yet concluding. Last month, bitcoin miners generated $1.39 billion in block rewards and fees. Data from Saturday afternoon shows that, for March, bitcoin miners have already amassed $1.44 billion in combined fees and block subsidies.

At block height 835,953, a mere 4,047 blocks remain until the fourth halving event, which will reduce the block reward from 6.25 bitcoins per block to 3.125 BTC per block post-halving. Furthermore, only 691 blocks are left until the next difficulty adjustment, with one more additional difficulty change expected before the halving occurs. Right now the halving is 28 days away and expected to occur on or around April 20, 2024.

What do you think about the report that estimates a large chunk of hashrate could possibly retire by the time the halving comes? Share your thoughts and opinions about this subject in the comments section below.