The hash rate of the Bitcoin network has surpassed 540 exahashes per second, setting a new record. But the hash price and profits are falling downhill once again.
Mining hash rates, the computational power of the Bitcoin network, hit a new record high on Christmas Day, but miners are feeling the pinch as profits fall.
There were a record-breaking 544 exahashes per second (EH/s) for Bitcoin on December 25, as reported by Blockchain.com. Bitinfocharts corroborated the findings by reporting a weekend high for the average hash rate.
It occurs at a time when network hash rates have increased by 130% since January, more than double this year.
Since January 1, 2023, the price of bitcoin has climbed by about 150%, mirroring the trend of the asset’s hash rate.
“The summer 2021 China mining ban is barely a blip,” said Will Clemente, co-founder of Reflexivity Research, after examining the hash rate on a logarithmic scale.
Even while a high hash rate is great for theoretical pricing models like implied hash-adjusted price, it is bad news for miners since it means they have to work harder to get the next block.
Profitability metric hash price has dropped in previous week as interest in BRC-20 ordinal inscription decreased.
Since reaching a peak of $0.136/TH/s/day on December 17, 2023, profitability has declined by 34%. As was the case during the recent inscriptions craze, the hash price typically jumps with strong demand, leading to hefty transaction costs.
“We are approaching a year without completely clearing Bitcoin mempools, having maintained elevated fee pressure since February,” an analyst at Glassnode noted. “Delay matey.”
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