Bitcoin Hashrate is Tanking. Nobody Panic

Bitcoin Hashrate is Tanking. Nobody Panic

Bitcoin’s hashrate has dropped significantly post-halving. But it's a move that many in the mining industry anticipated, and most expect will only be temporary.

  • Following Bitcoin’s third halving, mining revenue has been halved.

  • The network's strength, measured in hashrate, is very much tied to this revenue and is similarly decreasing.

  • Miners say they expected the drop, and it won't last.

Bitcoin just experienced its third halving, which reduced the cryptocurrency’s mining rewards from 12.5 to 6.25 BTC every block. And in the wake of this supply squeeze, Bitcoin’s daily inflows are not the only thing in retrograde. The Bitcoin network’s hashrate (or, an aggregate measure of how much computing power is being employed to mine Bitcoin) pulled back by roughly 20%, according to figures run by Ethan Vera of Luxor Mining Pool.

“Since the halving it appears that around 20% of network hashrate has turned off. Going down from 120 [exahashes] to 100EH,” Vera told Decrypt. Coinciding with this hashrate dip is an expected cut in miner revenue. “Hashprice,” as Vera called it, is now “8.1 cents [per terahash], dropping from 13.5 cents pre halving, representing a 40% drop in miner revenue.” Read More...