Bitcoin’s Hashrate Drops 30% Just Days After Halving

Following Bitcoin’s third halving to date, the network’s total hashrate has fallen by around 30 percent. The data comes courtesy of BTC network analysis firm CoinMetrics.io. The sudden loss of revenue for miners following the reduction in block reward will mean that some mining operations are no longer profitable. Those using less efficient hardware or mining where electricity is relatively expensive will be the most impacted. CoinMetrics reports that the falling hashrate has meant miners are currently discovering blocks less frequently. Prior to the halving, the average block time was 7.5 minutes. It’s now more than 13 minutes. The firm also notes that Monday’s halving was a complete success. It reports a new annualized Bitcoin issuance rate of less than 1.5 percent. The strain on less profitable miners was anticipated by many, and CoinMetrics does not expect any long-term impact of the falling hashrate, writing:

“It will likely recover after a period of churn where efficient miners replace less efficient operations.”