The mining hash rate, or computer power of the Bitcoin network, hit a record high on Christmas Day, but the decline in profitability has increased the strain on miners.
Blockchain.com reports that on December 25, Bitcoin’s hash rate hit a record-breaking 544 exahashes per second (EH/s). Bitinfocharts, which showed an average hash rate surge over the weekend, verified the data.
It occurs at a time when network hash rates have increased 130% since January, more than double this year.
In tandem with the rise in BTC hash rates, the asset’s price has exhibited a nearly identical pattern, rising by over 150% from January 1, 2023.
“The summer 2021 China mining ban is barely a blip,” remarked Will Clemente, co-founder of Reflexivity Research, after examining the hash rate on a logarithmic scale. “Imagine fading the most secure decentralized open-source monetary network on the planet, couldn’t be me.”
For theoretical price models like implied hash-adjusted price, a high hash rate might be advantageous, but it is bad news for miners who have to put in more effort to secure the next block.
As the BRC-20 ordinal inscription frenzy subsided over the previous week, the hash price—a gauge of profitability—has decreased. According to HashrateIndex, the hash price is presently $0.09 per terahashes per second per day.
Since its peak in 2023 on December 17, at $0.136/TH/s/day, profitability has decreased by 34%. As was the case during the recent inscription frenzy, the hash price frequently jumps during periods of heavy demand, resulting in hefty transaction fees.
“After sustained elevated fee pressure since February, we’re approaching nearly a year without fully clearing Bitcoin mempools,” noted Glassnode analyst. “Checkmate-like.”
According to Coinbrit, network hash rates initially surpassed the 500 EH/s threshold in late November.