This year is the year of the bitcoin halving. So the speculation surrounding the bitcoin halving is not abating. Recently Galaxy Digital released a study and they claim that block reward will be halved next April when Bitcoin is supposed to halve. But their research claims that most old mining rigs will still struggle to break even after the reward is halved. This could prompt miners to take it offline as older miners struggle to break the rigs. There are even claims that 20% of Bitcoin's current hash rate could go offline after the Bitcoin halving. We know that when Bitcoin halves, miners' mining rewards are halved. However, it is said that the block rewards will be cut in half. But even if the block rewards were halved, it would appear that only the most efficient mining rigs would be left standing.
Bitcoin halvings are basically every four years. Which was completed last year 2020. Accordingly this year is the year of the Bitcoin halving. Usually the mining that miners get is basically halved every four years. Anyway late last year over 70% of Bitcoin hash rate was churned out by eight ASIC miner models. However, it is estimated that 15 to 20 percent of the network hash rate can come offline from ASIC models. So we know there are different ASIC models. And it's a matter of looking at how sensitive the breakevens are to that and the value of the bitcoin and the transaction fee is being calculated as a percentage of the reward and that percentage is calculated to be 15 to 20.
We know that Bitcoin mining requires a lot of electricity. As a result, many countries cannot use this amount of electricity, which is impossible and requires a lot of electricity. So Galaxy predicts possible future electricity prices. This is associated with every mined Bitcoin. Because it has calculated the breakeven point for the mining rig model based on Bitcoin's post-halving economics. However, expect the bitcoin halving to begin in the middle of this year and the rewards to be halved. It is estimated that the five models together accounted for about 15% of Bitcoin's hash rate at the end of last year. At the more conservative end of Galaxy's projections, almost all old mining rigs will shut down when the reeds are halved.
However, Antminer S19 and S19J Pro models are expected to survive among the many models. Because it is considered that such models are newer and more popular models. And these numbers accounted for more than half of Bitcoin's hash rate last year. Research by Resource of the Galaxy claims that Bitcoin half can go offline even after a certain percentage of mining experienced miners. and as well as the A1246 in Canaan, although a small percentage of each may go offline in the area during working hours. Because we know it consumes a lot of electricity and the cost of electricity is very high.
In addition to electricity, other costs, especially equipment or some materials, are expensive and not readily available. We know that's why bitcoin mining is banned in many countries because there are many countries in the world that can run a third of the country with the amount of electricity consumed in bitcoin mining. However, Galaxy analysts noted that their estimates may be affected by some business decisions.
Those miners are much older and have much more experienced and more inefficient machines. Those operating miners will likely have custom firmware to improve the efficiency and output of their rigs, Galaxy's research claims. There are even claims that some mining models can change hands to miners with cheaper electricity costs instead of going offline. But this will be possible only when the cost of electricity is cheap. But the reality is that the cost of electricity is much higher. However, many experts have given different opinions about this. Many of them speculate that miners using the new S19 models may be unable to continue their profitability. The reason is that those involved in Bitcoin mining who use old mining rigs can buy them as upgrades.