The Bitcoin network’s hash rate, which shows how fast and safe it is, has hit a new high point, going over 540 exahashes per second (EH/s). This important milestone, reached on Christmas Day, shows how strong the network is getting. However, it also shows how hard it is for miners because they are making less money.
Bitinfocharts and Blockchain.com both show that on December 25, the Bitcoin hash rate reached an all-time high of 544 EH/s, which was a sign of a lot of action on the network. The hash rate has been going up all year, with this rise part of a larger trend. Since January 2023, it has more than doubled, which is a 130% increase.
In the same time period, Bitcoin’s price has also gone up a lot, following the path of the hash rate and rising by over 160% since the start of the year.
There is a strong link between the network’s computing power and its market value, as shown by this similar rise. Will Clemente, co-founder of Reflexivity Research, talked about how strong Bitcoin’s network is, especially after China banned mining in 2021. He emphasized that Bitcoin is a very safe, independent currency system.
On the other hand, this record-breaking hash rate is both good and bad, especially for miners. A high hash rate means that the network is strong and safe, but it also means that there is more competition among miners to get the next block, which makes it less profitable for each one.
Recently, there has been a drop in the hash price, which shows how profitable Bitcoin mining is. HashrateIndex says that the average price of a hash is about $0.09 per terahash per second per day.
This is a big drop of 34% from its 2023 high point of $0.136/TH/s/day, which was recorded on December 17. Hash price changes often correspond to changes in network demand and transaction fees. For example, the recent drop in hash price after the BRC-20 ordinal writing craze died down is proof of this.
Glassnode expert “Checkmatey” noticed that network fees have been staying high for a long time. He pointed out that the Bitcoin mempools have not been fully cleared for a long time since February, which is a sign of ongoing high fee pressure.
Nosisnews was the first to report that the network had reached a level of strength above 500 EH/s. This was the start of an unheard-of rise in network strength.
Bitcoin miners will have a hard time in this situation. The rising hash rate shows that the network is becoming more stable and strong, but it also highlights the problem of diminishing returns for miners, who now have to deal with tougher competition and lower profits as they work to keep the world’s largest cryptocurrency network safe.
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