Bitcoin Hash Rate Hits Record High, Miner’s Profits Plummet

• The hash rate of BTC hit a record high of 544 exahashes per second (EH/s) yesterday.
• The announcement follows a 130% increase in network hash rates since January.

The computing power of the Bitcoin network, often known as the mining hash rate, hit a new record high recently. However, with profitability taking a nosedive, miners are feeling the heat.

According to Blockchain.com, the hash rate of Bitcoin hit a record high of 544 exahashes per second (EH/s) on December 25. The information was validated by Bitinfocharts, which noted a weekend high in the average hash rate.

The announcement follows a 130% increase in network hash rates since January, which has more than doubled this year. In late November, network hash rates initially surpassed the 500 EH/s milestone.

Profit Shrink

The price of bitcoin has climbed by almost 150% since January 1, 2023, which is almost in line with the figure showing the growth of bitcoin hash rates. Theoretical pricing models, such implied hash-adjusted price, benefit from a high hash rate, while miners, who have to work harder to get the next block, don’t.

Profitability metric hash price has dropped in previous week as interest in BRC-20 ordinal inscription has waned. According to HashrateIndex, hash price currently is $0.09/terahashes/second/day.

Since December 17 this year, when profitability peaked at $0.136/TH/s/day, it has declined by 34%. Instances of extreme demand, like the recent inscriptions frenzy, cause hash prices to skyrocket, leading to exorbitant transaction costs.

After suffering losses in 2022, Bitcoin has recovered to set a new yearly high and show signs of a strong year-end. Looking at previous patterns, it seems that there could be further growth in the future.

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