About 15-20% of the total computing power of the Bitcoin network will be unprofitable after the halving in April. Such assessments led to Galaxy Digital.
According to the study, in the face of halving the reward, miners will turn off some of the installations, leaving only the most efficient equipment in operation.
According to analysts, more than 70% of Bitcoin’s hashrate was generated by eight models of ASIC devices.
Galaxy Digital obtained similar data based on the cost of digital gold at $45,000, a reward for the mined block of 3,125 BTC and a 15% commission for transactions. Experts also took into account energy costs.
A more conservative estimate is that almost all of the older devices – Bitmain's S9, Canaan's A1066 and MicroBT's M32 line – will become uncompetitive.
About half of MicroBT M20 and Bitmain S17 installations will be on the verge of zero economic efficiency. At the end of 2023, the mentioned models accounted for 15% of the network hashrate.
Galaxy Digital noted that the halving will not affect “such a dramatic way” on Bitmain’s Antminer S19 and S19J Pro and Canaan’s A1246, which accounted for more than half of the computing power. Miners can turn off devices only with a relatively high cost of electricity, experts said.
In an unfavorable scenario, the mentioned models will also be able to bring profit to their owners.
Galaxy analysts warned that such estimates will require clarification if effective firmware is installed on old equipment and devices are transferred to regions with lower energy costs.
Halving is expected at block #840,000 (presumably April 23).
By early February, Bitcoin miner reserves had fallen to July 2021 levels. According to Bitfinex analysts, miners are motivated to sell in order to upgrade their infrastructure in preparation for the upcoming halving.
Source: Cryptocurrency
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