In the last two weeks, the hash rate of Bitcoin has almost halved. It dropped from the high of about 62 million TH/s on August 27th to a low of $34 million TH/s on 22nd November.
As the crypto market value dropped this week, miners all over the globe started switching off their hardware so as to reduce the losses that will result from reduced mining rewards. F2Pool co-founder, Chun Wang revealed that the company had no choice but to switch off thousands of their machines.
Bitcoin (BTC) Price Today – BTC / USD
Despite the crash that took away from the market about $80 billion this month, crypto assets have seen great signs of improvements. Since yesterday, Bitcoin has managed to maintain a strong support above $4,200, and also saw a rise by 3% today up to $4,338. Ethereum after experiencing harsh losses this week, rose by 5%, even Bitcoin Cash (BCH) that has been war-torn has risen by 1%.
Though the decline will definitely cost miners thousands of dollars in lost revenue, as declines in the hash rate happens, there will be improvements in the ability to earn rewards and miners will finally be able to switch back on. Smaller mining operations will also have the opportunity to enter the market as a result of the reduced hash rate.