News - Why Bitcoin mining's hashrate may collapse

By Mike Hesp

Why Bitcoin mining's hashrate may collapse

Bitcoin (BTC)
Mining
Blockchain-Technology

As a result of the coming halving of Bitcoin, the mining hashrate may collapse. At least that's what US bank JPMorgan predicts.

In a report released on Oct. 11 published, US bank JPMorgan predicts a 20 percent collapse of the Bitcoin mining hashrate.

The report states, "More hashrate has been added in the past 9 months (about 160 EH/s) than in the first 12 years of Bitcoin's existence. Unless Bitcoin doubles, we think the pace of hashrate growth will slow to about 15 EH/s per quarter, which equates to about $200 million to $300 million in global hardware investment per quarter."

Therefore, the major bank estimates that in the wake of the upcoming Bitcoin halving, in which rewards for miners are halved to 3.125 BTC, "up to 80 EH/s, or 20 percent of the network's hashrate, could be removed."

The reason for this, he said, is that less efficient hardware is being decommissioned, because mining for these devices is then no longer profitable.

To what extent the upcoming Bitcoin halving also means opportunities for the mining industry, you can read in this article: Bitcoin Halving: Stress Test for Miners?

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