The hashrate index of the Bitcoin network has plummeted in the context of plummeting prices, it seems that many miners have decided to "draw power" and wait for the coin to rise again to a profitable price for mining.
Bitcoinrate hashrate is often seen as a way to assess the health of a network. While it is not a perfect indicator, it tells us a lot about the security of the Bitcoin network. And sadly, this number has dropped dramatically over the past few days.
Bitcoin hashrate has seen a rare drop
A few months ago, Bitcoin hashrate continuously created new highs, even in the time when the cryptocurrency market "hibernated", however, the volatility in the past, plus the pressure of the coming halving. Nearly, many miners have to give up. That's not good news for Bitcoin.
Skew (@skewdotcom) recently reported that Bitcoin hashrate has dropped by about 40% this month. Usually, before months of preparation for halving occur, the opposite trend will occur, at least in previous times. However, at the present time there are too many factors affecting the economic picture of the whole world, the same thing could not happen.
Worth monitoring Bitcoin's hash rate as we approach halving and spot has retraced 40% this month. Back <100 Ehash / s
- skew (@skewdotcom) March 17, 2020
Bitcoin Hashrate is currently below 100 trillion hashes per second, the lowest level since January 2020. Although the 40% reduction is huge, it only brings us back to the level of two months ago. As mentioned, the Bitcoin network has a characteristic that will become more stable over time. So, this is not a reason to panic or believe Bitcoin is faltering.
Decreased mining profits
One easy reason to explain this hashrate reduction is that Bitcoin mining is no longer profitable for miners. According to BitInfoCharts, the amount of USD per day that miners earn has dropped sharply since the beginning of this month.
That puts Bitcoin's current mining profit at an unprecedented low for years. Not to mention, with the halving event less than 2 months away from happening, the block reward has become less and less, which makes many diggers seriously consider their ability to continue operating.
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According to Coin68 / BeInCrypto