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The miners that are now fleeing will likely never come back online if they don’t upgrade their equipment or find extremely cheap electricity sources, as the mining reward will be halved once the event occurs:
“All older machines will no longer be profitable unless they are mining on nearly free electricity or if the price shoots up by 2x or more.”
According to De La Torre, unprofitable mining operations based in China will be the first to switch off. The halving will take place in the early morning local time, which is why Chinese operators are now shutting down profitless units before punching the clock.
Hash rate to decrease post-halving, bouncing back afterward?
This shutdown will affect the total hash rate, De La Torre added, since the soon-to-be unprofitable units generate “about 15–30%” of that number.
As previously reported by Cointelegraph, Bitcoin’s mining hash rate has seen major volatility ahead of the halving and is likely to fall soon after it takes place — but could then start to bounce back as the new generation of mining machines gets shipped out.
