Shortly after going through halving, Bitcoin hashrate plummeted as miners shut down machines
Bitcoin’s third halving was one of the opening chapters in the constantly evolving crypto space of 2020. Despite being in its early stages, halving shed more light on the evolution of the BTC network and ecosystem than many other metrics. The stark difference in sentiment from the first Bitcoin halving to the third was phenomenal and, according to Bitcoin Bull – Tuur Demeester, put into perspective the expectation that existed until the second halving.
Demeester recently appeared on “Unqualified Opinions”By Ryan Selkis, in which the oldest Bitcoin analyst shared the different issues that bothered the community from the first to the third halving. The recent event was filled with pomp and joy after the miners successfully managed to extract the 630,000th block. However, in 2012 flashback, when the BTC first passed, there were fears that the protocol could survive this event.
The unexplored territory of BTC’s first halving was compared to the “Y2K” bug, which worried the government and companies that computer clocks might not be able to handle data scrolling. Although the network passed the test with bright colors, the second halving brought up another issue of the mining spiral. Demeester recalled the first halving:
“… There was a lot of fear that maybe something would go wrong, who knows. We might have to fix a bug. “He continued:” It was like a Y2K movement, as if computers went from 1999 to 2000 as a good thing and nothing happened. “
As the BTC community grew exponentially between 2012 and 2016, the issue shifted from the protocol to the mining spiral. The issue was, however, exaggerated and, as the event occurred, the network witnessed a brief dip in the hashrate, but the miners were back on track. This was also consistent with the third halving. The hashrate has been falling since the May 11 event and currently stands at 109.46m TH / s.
However, with the third halving, the spiral also presented itself as a futile fear, according to Demeester. He stated:
“The spiral is not going to happen. I mean, it’s self-correcting when, suddenly, all the miners start their machines. What they did (hang up), the hashrate goes down and, two weeks later, it is automatically adjusted. “
He also noted that there may be new “profit incentives” for miners to enter the game for rewards. However, looking at the current state of the BTC network, we are a week after halving and mining revenue, which was $ 171.168 million on May 11, 2020, dropped to $ 7.112 million on May 17.
While the total transaction fees paid to miners peaked after halving, to $ 1.539 million, it now stands at $ 972,748 thousand. In order for miners to return, a new incentive scheme is needed to maintain the hash rate, thus enhancing sentiment in the BTC market.
Source: AMB Crypto