Bitcoin’s hashrate has plummeted following Monday’s block reward halving, indicating the overall network strength.
Bitcoin’s hashrate has fallen nearly 20% since May 11’s halving, according to data from CryptoCompare. Hashrate serves as an aggregate measure for the computing resources being devoted by miners towards maintaining Bitcoin’s network.
#Bitcoin’s #hashrate saw a 20% drop post-#halving. The mining industry anticipated the decline and expects it to be temporary. When will it start climbing back? https://t.co/CEXi7bZiOH via @decryptmedia pic.twitter.com/1B4PowZXPZ
— CryptoCompare (@CryptoCompare) May 14, 2020
Some analysts claim the pullback in hashrate was expected following the halving, in addition to a reduction in miner revenue.
Ethan Vera of Luxor Mining Pool told Decrypt,
Since the halving it appears that around 20% of network hashrate has turned off. Going down from 120 [exahashes] to 100EH. Hashprice [is at] 8.1 cents [per terahash], dropping from 13.5 cents pre halving, representing a 40% drop in miner revenue.
Bitcoin supporter Matt Odell explained in a tweet on May 13 that hashrate is difficult to measure for shorter time frames. According to Odell, investors will have to wait a few weeks for an accurate understanding of the halving’s network impact.
Hash rate measurements are derived using average block times and the current difficulty. As a result it is hard to calculate accurately for shorter time frames.
We will have a better idea of how much hash rate dropped off the network post halving over the next few weeks.
— Matt Odell (@matt_odell) May 13, 2020
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