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September 20, 2020
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Bitcoin

30% of miners can stay out of the game after Halving

Study points out a worrying number of Bitcoin miners who would be working with obsolete machines before the last halving, which they could suffer from now.

According to a recent report prepared on May 2, 2020, at least 30% of miners in the Bitcoin network may be forced to stop their operations after the newly reached third halving in the history of cryptocurrency.

The document was produced by Alejandro De La Torre, vice president of Poolin, one of the largest pools mining industry today.

De La Torre’s observation points out that a significant proportion of the miners at Poolin are using outdated hardware. With half the rewards for new blocks being provided compared to last week, less efficient miners are naturally removed from the ecosystem every halving.

Report details

The document includes a breakdown of the lowest quartile of miners in the Poolin network. Among these are miners with a performance between 0-25 terahash per second. 37% of the miners in that portion of the study (or almost 10% in total) were using computational processing between 6 and 14 terahash per second.

To illustrate how outdated these figures are, the newer machines work at about 100 terahash per second. Projecting the characteristics of Poolin’s miners across the Bitcoin network, De La Torre estimates that at least 30% of the network in pre-halving was working at levels below 25 terahash per second.

These machines are probably inefficient to compete with the cutting edge hardware seen today.

Bitcoin Hashrate. Source: Bitinfocharts.com

According to website data BitInfoCharts, the Bitcoin network hashrate has been steadily increasing since mid-March towards its historic high of 123 equihash per second before the halving.

There is still no clear sign of a drop from that top now that the halving It happened.

Source: Cryptoglobe

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