The drop in the hash rate was predicted by some industry figures, who also said it was a bullish sign of the price of Bitcoin.
The hash rate of the largest cryptocurrency has fallen by 30% in the last three days.
Halving undermines the income of the miners, as a result of which some operations become unprofitable and must be stopped. The income for a given hash rate is the same for all miners, their costs vary. For Bitcoin miners, the biggest expense is electricity.
The price per kilowatt hour is fixed for a given location, but there is often a big difference in how efficiently this energy is used by the digger. Newer equipment consumes less energy for more work. Therefore, even if two miners pay the same price per kilowatt-hour, they may have different real costs for their operation.
Many miners with older equipment have to stop digging, at least until they get newer machines or the difficulty of extraction subsides.
Matt D’Souza, CEO and co-founder of Blockware Solutions, said:
You can see a potential 25% to 30% of the network shut down and now 25% to 30% of Bitcoin (that is, the coins they received) goes to the survivors. So whoever survives will do very well. They will accumulate a ton of Bitcoin and therefore do not need to sell so much Bitcoin to pay their electricity bills. More Bitcoin will accumulate from very strong hands, very experienced miners, very efficient miners, instead of being sold to cover costs.
Christopher Bendixen, head of research at CoinShare, shared a similar view:
According to our estimates, and these estimates are a bit outdated, about 30% of the hash rate comes from old equipment. So about 30% of the hash rate [may disappear].
A representative of RRMine also expressed a similar opinion:
… On the day of halving, the production of miners will fall by about 29%. Therefore, miners who survive halving will see a large increase in their output, which may be 11% above previous productivity.