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Unprofitable miners leave the Bitcoin network before BTC is halved

May 11, 2020

With halving just under four hours, Unprofitable miners have already started shutting down their equipment, said the vice president of the important Poolin mining group, Alejandro De La Torre. in an interview with Cointelegraph on May 11th. These miners are estimated to account for “15-30%” of the total bitcoin (BTC) hash rate.

“The personnel of the mining companies will be shut down [sus unidades] while we speak, because after halving, they don’t want it anymore because they would lose money, “De La Torre told Cointelegraph.

Miners who are now on the run are unlikely to reconnect unless they upgrade their equipment or find extremely cheap power sources. Because the mining reward halves as soon as the event occurs:

“All older machines will no longer be profitable unless they are dismantled with almost free electricity or the price rises twice or more.”

Unprofitable miners leave the Bitcoin network before BTC is halvedUnprofitable miners leave the Bitcoin network before BTC is halved

According to De La Torre, Unprofitable mining operations based in China will be the first to go offline. The halving will take place early in the morning at local time, which is why Chinese operators are now closing nonprofits before looking for other options.

The hash rate decreases after halving. Does she jump off afterwards?

This shutdown will affect the overall hash rate, De La Torre added, as the unprofitable units will soon generate “about 15 to 30%” of that number.

As Cointelegraph previously reported, Bitcoin’s mining hash rate experienced great volatility prior to halving and is likely to decrease soon after it is implemented, but could then recover with the delivery of the new machine generation. Mining.

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