Bitcoin mining hashrate reaches record highs
Bitcoin mining hashrate reaches record highs
The Bitcoin network hash rate hit new record highs, rising to over 540 EH/s.
At the same time, hash costs and mining yields continued to fall.
The hash rate shows the performance of mining equipment and is measured in solutions per second. According to Cointelegraph, the network hashrate, the processing power of mining on the Bitcoin network, first broke through the 500 EH/s mark at the end of November, and already on December 25, the hashrate reached a record high of 544 EH/s.
Such levels caused increased pressure on miners due to the decrease in hash value and, consequently, a decrease in profits.
The high hash rate was recorded by Blockchain.com and confirmed by Bitinfocharts, which informed users about new record hash rate peaks during the holidays.
According to statistics, the hash rate of Bitcoin mining has more than doubled since the beginning of this year. Along with this, the Bitcoin hash rate has increased by 150% since January 2023.
Will Clemente, one of the industry experts and co-founder of Reflexivity Research, conducted a study on the change in hash rate on a logarithmic scale. He said that China's ban on mining in 2021 is just the first symptom, but he can't imagine "the most secure open-source decentralized money network on the planet disappearing".
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Increasing hash rates may be beneficial for theoretical pricing models, but it is not beneficial for miners, who need to increase their efficiency to secure the next block.
The price of a hash, which determines the profitability of mining, has declined as the BRC-20 ordinal inscriptions craze has cooled. Currently, the hash price has reached $0.09 per TH/s.
This represents a 34% drop in profitability from the year's high of $0.136 per TH/s. In times of high demand, the price of hash can rise sharply, provoking high transaction fees, as happened this time, when Bitcoin miners' income from transaction fees quadrupled this year to nearly $2 million per day.
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Read also: Price of Shiba Inu has plummeted.
