They Couldn't Escape: Bitcoin Mining Profitability Drops to Record Low!

In August, Bitcoin mining profitability fell to an all-time low as the network hashrate increased.

In the first two weeks of August, Bitcoin mining profitability fell to an all-time low as the network hashrate increased. According to a research report by JPMorgan, the hashrate share of US miners on the Bitcoin network rose to 26%, setting a new record.

Hashrate refers to the total computing power used to mine and process transactions on a proof-of-work blockchain. The report states that network hashrate has increased by 1% so far this month, reaching a total of 621 exahash/second (EH/s). This increase occurred despite still being 30 EH/s below pre-halving levels.

JPMorgan analysts Reginald Smith and Charles Pearce noted that the total market value of 14 mining companies listed in the US has fallen by 18% since the end of July, and these companies are trading at twice the four-year block reward. This decline may be related to the return of profits related to artificial intelligence (AI).

The report also highlighted that the hashprice, which measures mining profitability, is 30% lower than in December 2022 and remains about 40% below pre-halving levels. This could slow hashrate growth in the near term.

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