Poolin told halving will make small miners weakColin Baseman
Some ASIC miners will go offline after Bitcoin experiences halving forever. Representatives of the Poolin pool figured out which devices will be turned off and to what extent the first cryptocurrency’s hash rate will fall.
Vice President of Poolin Alejandro De La Torre reviewed the lower quartile of the entire Bitcoin hash rate (from 0 to 25 T/s) and divided it into some intervals of two terahashes a second. This quartile contains most devices with 16-and 10-nanometer chips.
The trendiest miner of the preceding four years has been Bitmain's Antminer S9. All its versions remain in the 12-22 T/s range, and the average model generates 13.5 T / s. They are accountable for almost all the computing power in the 12-14 T/s range, that makes 15-30% of the network’s entire hash rate, writes De La Torre.
The pool calculated at what range of electricity costs the miners of lower quartile will stay cost-effective. The calculations considered the Bitcoin price at $7000 and the existing complexity of production.
The maximum rate for the most powerful devices in the lesser quartile equals 3.4 cents per kilowatt. Devices in the range of 0-10 T/s will remain profitable only with free electrical energy and no other expenses.
In the 10-16 T/s range at 3 cents per kilowatt, merely the Antminer S9K will survive. This indicator is 46% of the lower quartile’s hash rate. The majority of devices require a tariff of no more than 2 cents per kilowatt. Moreover, even if they survive, De La Torre stressed, raising complexity will ultimately force them to leave to go offline.
In the extent of 16-26 T / s, the chances of surviving the halving and maintaining profitability are higher for the time being. Devices are suitable rates of 3-3.5 cents per kilowatt.
Poolin expects that a lower level than 15% of the hash rate after halving will stay from the lower quartile. The situation for these devices may be worsened by recalculating the complexity in the approach to halving. Some are pinning their hopes on auto-tuning.
De La Torre added that the new 5-nanometer devices would be money-making for the following four years, as the industry has reached Moore's law limit.
Who will continue extracting Bitcoin?
In a week, there will be a reduction in the return for the extracted block in the Bitcoin network. mining-pools representatives have predicted how this situation will affect the industry
After halving, it will not be possible for Small miners to keep on functioning, major hashing pools representatives, have the same opinion. For instance, as said by F2Pool managing partner and co-originator Wang Chun, less effective players will be eliminated by major businesses. Alejandro De La Torre, Vice-President of Poolin, shares this view.
Poolin representative also said that several entities very previously prepared for halving, and provided that they possess novel equipment and can access to low-cost electrical energy, they will not undergo any difficulties.
Ibrahim Alcurd The president of New Mine, stated that there are more than a few "major" hashing firms in North America that pay a lesser amount than $0.03 per kWh. Alcurd noted that He is not confident about a dramatic growth in the exchange rate of BTC after its halving, so the traders should not rely on it.
The originator of F2Pool said that assuming the present surge in hashing complexity, it is probable that any mining farm that uses less than $3,500 on hashing one BTC will continue its activity.
Halving will take place at block #630,000. It should be produced on May 12, if the acceleration of production does not bring adjustments.
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