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According to JPMorgan’s prediction, after the halving process, we will see a decrease in the Bitcoin hash rate in 2024. In this Pooyan Music post, we will examine the possibility of this happening.
A JPMorgan report predicts that the hash rate of the Bitcoin network will drop by 20% after the Bitcoin halving in April 2024. The Bitcoin mining industry is at a “critical moment” with the upcoming halving. An event halves miners’ rewards.
Despite being the largest operator, Marathon Digital lists CleanSpark as its “top choice” among Bitcoin mining companies. JPMorgan has published a report in which it predicted a possible 20% drop in the hash rate of the Bitcoin network following the Bitcoin halving in April 2024.
The report states: “We estimate that 80 EH/s (or 20% of the network’s hashrate) can be removed in the next half (April 24). Because the hardware with less efficiency is out of use.
This research report suggests that the Bitcoin mining industry is at a “critical moment” ahead of the Bitcoin halving in April 2024.
Bitcoin halving happens every four years. It includes halving the rewards of Bitcoin miners. Its goal will be to reduce inflation and its fourth halving in April 2024.
It goes on to state that the four-year block reward opportunity is about $20 billion in total. This prediction is based on the current price of Bitcoin. However, it shows a significant decrease of about 72% compared to the previous two years.
“This figure reached 73 billion dollars on April 21. “Last year, it fluctuated between 14 and 25 billion dollars.” At the time of publication, the price of Bitcoin is $26,778.
Bitcoin price variation in the last month
JPMorgan lists several Bitcoin mining companies. But the Bitcoin mining company presents CleanSpark as its preferred option. “We believe CLSK, our top pick, offers the best balance of scale, growth potential, power costs and relative value.”
However, the investment firm notes that while Marathon Digital is the largest operator, it has the highest energy costs and lowest margins.
Digital Marathon provides an operational summary on its website and notes that the figures are rough estimates. However, the company claims that it currently has approximately 155,910 miners operating worldwide.
Meanwhile, it believes that Riot Platforms costs relatively little energy and liquidity. In contrast, BeInCrypto recently reported that four-year cycles may not be related to Bitcoin halving, as is commonly assumed. Referring to their new report, Bitcoin enthusiast “Pledditor” questions the widely held assumptions.
“Bitcoin’s four-year cycles are just random. That is, they have little to do with halving it.” Nevertheless, the upcoming halving has created excitement among Bitcoin mining companies.
On August 16, BeInCrypto reported that Bitcoin infrastructure company Blockstream is buying Bitcoin mining rigs with the expectation that the assets will increase in value after April 2024.
