The hashing speed, or hash rate, of the #Bitcoin network has reached an exceptionally high value, exceeding 540 exahashes per second. However, this increase comes with a decrease in profitability, raising concerns among miners.

Record Bitcoin Hash Rate

On Christmas Day, the Bitcoin network recorded its highest ever hash rate, reaching 544 exahashes per second, as reported by Blockchain.com. This figure was also confirmed by Bitinfocharts, which reported a similar increase over the weekend. Notably, the hash rate has more than doubled since January of this year, representing a 130% growth.

 

A chart depicting Bitcoin’s hash rate over the course of 2023. Source: Blockchain.com

 Impact on Price and Miners

Although the price of Bitcoin has increased by more than 150% since January, mirroring the rise in hash rate, this poses greater challenges for miners in securing new blocks. Will Clemente of Reflexivity Research points out that even the mining ban in China in 2021 had a minimal impact on the hash rate.

 Drop in Mining Profitability

The hash price, an indicator of profitability, has fallen to $0.09 per terahash per second per day in the last week, according to HashrateIndex. This 34% decrease in profitability compared to its peak in December 2023 suggests that miners are experiencing a more challenging period, especially during times of high transaction fees and increased demand.

 Overview and Outlook

As the year draws to a close, with sustained high pressure on transaction fees as noted by Glassnode analyst "Checkmatey," the Bitcoin network becomes a focal point of attention. The development of the hash rate and its impact on the Bitcoin ecosystem will continue to be monitored, particularly in light of surpassing the 500 EH/s milestone at the end of November.

 

Bitcoin hash price ($/TH/s/day) 1 month. Source: Hashrateindex

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