24% of Bitcoin’s hashrate or processing power will be inactive after the 2024 halving, a report said.
24% of Bitcoin’s hashrate or processing power could be inactive after the 2024 halving. In addition, the most efficient miners could even benefit from the disconnection of the less efficient ones. The data was presented in the report 2024 Halving Analysis: Understanding Bitcoin Market Cycles and Opportunities Created by the Halving.
The calculations made by specialists from Blockware Solutions, a company that provides Bitcoin mining services, took as a reference a price of US$35,000 for bitcoin (BTC) after the halving and a hashrate of 420 EH/s for the network. In that context, Only the miners with the most efficient equipment would survive, it was detailed, which are 76% of the total hashrate of the network.
The document also details that the number of bitcoins mined per year will decrease by 164,250 bitcoins per year. In this regard, it is noted that the Antminer S19 and the Antminer S19XP need a lower bitcoin price to start being profitable. This floor in the bitcoin price that miners need is called the “Breakeven price” in the Blockware Solutions text.
In contrast, older and therefore less efficient models need to sell their bitcoins at much higher values to stay afloat. This variant increases even more when the electricity rate also rises.
The report also tells what will happen before the halving: in the previous one, the weaker miners sell more bitcoins than the strong ones because they need it to pay their operating costs. In the posthalving, the second stage that is described, involves the decrease of the block rewards that the network grants. Thus, miners with less profit margin are forced to go offline.
Finally there is the post-capitulation. Here, there is a decrease in difficulty that paves the way for further investment in mining. The biggest and strongest miners are the main beneficiaries of such circumstances.
Source: Ambito
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