Bitcoin hash rate hits record high, Miner’s profits plummet. Recently, the mining hash rate, commonly referred to as the computational power of the Bitcoin network, has reached a new record high. As a result of the decline in profitability, miners are experiencing a significant amount of pressure.
Blockchain.com reports that on December 25, the hash rate of Bitcoin reached a new all-time high of 544 exahashes per second (EH/s), a record-setting number. The information was verified by Bitinfocharts, which found that the average hash rate reached a new high during the weekend.
Over this year, network hash rates have more than doubled, and the disclosure comes after they have increased by 130 percent since January. At the end of November, the hash rates of the network initially achieved the milestone of 500 EH every second.
Since January 1, 2023, the price of bitcoin has increased by about 150 percent, following a pattern almost identical to the figure that illustrates the growth of bitcoin hash rates. If the hash rate is high, theoretical pricing models, such as the implied hash-adjusted price, will benefit from it. Conversely, miners will not benefit from it because they will have to work harder to obtain the next block.
Because of the decline in interest in BRC-20 ordinal inscription, the price of the profitability measure hash has decreased over the previous week. HashrateIndex has reported that the price of a soup is currently $0.09 per terahash per second per day.
There has been a 34% decrease in profitability since December 17 of this year, when it reached its highest point of $0.136/TH/s/day. Instances of excessive demand, such as the recent craze for inscriptions, make hash prices spike, leading to excessive transaction costs.
As a result of Bitcoin’s recovery from the losses it experienced in 2022, it has established a new yearly high and is exhibiting signals of a robust year-end. Considering the patterns that have occurred in the past, it appears that there is the potential for additional growth in the future.