After what looked like an infinite hype, the Bitcoin split occurred. As expected, miners are pouring like a beef due to the decline in income after each half.
Cryptocurrency analyst and founder of Quantum Economics, Mati Greenspan, said that the Bitcoin hash power has experienced a 36% decline after the split. However, despite the importance of the decline, Greenspan stated that this situation is still in line with his expectations.
Bitcoin Hash Power Is Improving Today, there is some improvement in hash power after halfway. Currently, Bitcoin hash power has jumped from 105 EH / s to the last low of 83 EH / s. Its most recent hash power dropped to levels of 83 EH / s. It happened less than two months ago, when the price of BTC fell to $ 3.9 thousand after selling panic caused by viruses on Wall Street. However, after the split, the erosion of the block reward means that the income that miners can generate has been drastically reduced. Therefore, the pressure in the Bitcoin mining model lays off inefficient miners. The chart below from blockchain.com shows that miners' income fell to just 7.8 million dollars after the split. Inefficient Miners to Say Goodbye By far the biggest expense for Bitcoin miners is the cost of electricity, which can vary greatly depending on location. However, inefficiencies also apply to the use of old mining equipment that cannot compete with the latest equipment. For example, Bitmain's S19 Pro has a hash power of 110 TH / s, with a rating of only 13.5 TH / s compared to the old S9 model. However, the cost of competing to solve the mathematical puzzle is not worth it for those who run old equipment or have electricity costs above the industry average. In both cases, the net result is the same, a migration of miners. Even if this is on a temporary basis until the mining difficulty is set down, it makes the operation once again valuable. BTC Price Anomaly As documented by the crypto exchange OkEx, the blog post “Bitcoin Hash Strength and Dynamics of Price” includes: “When the BTC price goes up, the hash power increases; When the BTC price drops, the hash power also decreases. ” However, although the hash power has seen significant declines from miners leaving the network, the price has not yet complied, at least. Bitcoin's price rose slightly below $ 10,000, which contradicts a 16% gain and expectations after the halfway date. Some say that a concentration of efficient miners is good for the price, as they may have Bitcoin rather than bid farewell to the market. Others, however, also point to the anomaly between hash power and price.