Bitcoin has recently undergone its third halving, a process that has halved the cryptocurrency’s mining rewards. This significant event has resulted in a substantial impact on Bitcoin’s hashrate, which measures the computing power used to mine the cryptocurrency.

Following the halving, the hashrate has decreased by approximately 20%, leading to a reduction in miner revenue. Consequently, the hash price has dropped from 13.5 cents to 8.1 cents per terahash, resulting in a 40% decline in miner revenue. The average revenue for miners has been halved from $0.14 to $0.07 per terrahash over the past week.

Despite the decline in hashrate, this outcome was expected. According to representatives from Czech mining firm Slush Pool, it was anticipated that 10-25% of the hashrate would diminish, and the current decline of approximately 15% is at the lower end of initial estimates. However, the crypto industry did not anticipate Bitcoin’s price reaching $10,000 just before the halving, which enabled unprofitable miners to continue operating for longer than expected.

The decrease in hashrate is a normal part of the halving process, as it eliminates inefficient miners from the system. This discrepancy is expected to be addressed when Bitcoin’s difficulty adjusts in about five days. This self-correcting mechanism ensures that Bitcoin mining difficulty is adjusted based on the amount of hashrate in the network.

Industry consultant Kristy-Leigh Minehan also predicts a gradual decline over the three months before the halving, followed by steady gains as farms upgrade their older equipment with newer, more efficient models. Additionally, Slush Pool notes that China’s upcoming rainy season will provide inexpensive hydro power for miners in Szechuan, contributing to a potential gradual recovery of hashrate over the next month or two.

The recovery of hashrate is heavily reliant on Bitcoin’s price. A lower price will result in a longer hashrate recovery period, while a higher price would lead to a quicker recovery, potentially by June.

In conclusion, the impact of Bitcoin’s third halving on mining revenue and hashrate is a natural part of the cryptocurrency’s cycle. While the initial decline in hashrate is a temporary setback for miners, gradual recovery is expected over the coming months as the industry adapts to changes in mining rewards and adjusts for improved efficiency and lower production costs.

Related posts:

Potential for XRP to Skyrocket by 11,745% in the Coming Weeks, as Suggested by Prominent Analyst Why Bitcoin Prices Are Dropping and How Rebel Satoshi (RECQ) Is Holding Strong The Impact of Hash Rate on Bitcoin Mining Profitability Preparing Your Investment Strategy for an Expected Interest Rate Cut