Up to 30% of Bitcoin Miners Close Shop as Business Turns Unprofitable After Halving

About a third of Bitcoin (BTC) mining firms may already be switching off their machines as the business becomes unprofitable due to a reduction in mining rewards. The third Bitcoin halving – consummated earlier today – reduced supply of the pioneering cryptocurrency, cutting the bonus paid to miners for solving mathematical puzzles that underpin the network by 50% to 6.25BTC per block. According to Alejandro De La Torre, VP at mining pool Poolin, miners who make up between 15% to 30% of the entire BTC network hashrate are already in the process of shutting down as profit margins come under pressure. Those companies operating inefficient “old generation” mining rigs, such as Bitmain’s S9 miner, on higher electricity costs, will be most affected, he opined. “The … final difficulty adjustment with the 12.5 BTC block subsidy will occur one week before the halving (1008 blocks), and the difficulty is projected to increase,” De La Torre wrote in a recent analysis, adding: Read More...

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