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On Christmas day, the Bitcoin network achieved an historic milestone, recording an all-time high mining hash rate of 544 exahashes per second. This surge, reflecting a remarkable increase in hash rates since the year's commencement, echoes the digital asset's impressive price trajectory, which has soared by 163% since the beginning of the year.
Arman ShirinyanMax Keiser, an influential Bitcoin advocate and advisor to the president of El Salvador, recently took to social media, suggesting an implied hash-adjusted price for BTC that surpasses $400,000. While this sparks speculation about potential price models, the practical implications are exerting increasing pressure on miners grappling with a substantial dip in profitability.
The parallel surge in both hash rates and BTC price presents a paradox for the mining community. A heightened hash rate signifies that miners must intensify their efforts to secure the next block, translating into elevated operational costs and a challenging operational landscape.
Inscriptions hype
However, the euphoria surrounding the record-breaking hash rate is tempered by the hash price, a pivotal metric gauging mining profitability, which has experienced a downturn over the past week. Presently standing at $0.09 per terahashes per second per day, this decline is attributed to a fading interest in the BRC-20 ordinal inscription trend.
The profitability decline is underscored by a significant decrease from the 2023 peak on Dec. 17. This shift in hash price dynamics is a clear reflection of the diminishing enthusiasm surrounding inscription hype, which, in their heyday, led to increased demand and subsequently, elevated transaction fees.
Tomiwabold Olajide
Dan Burgin
U.Today Editorial Team
Vladislav Sopov