Bitcoin recently reached its highest hash rate ever, signaling an increase in the network's computing power. Although this indicates better network security, the profitability of Bitcoin mining has actually decreased. So, what effect does the hash rate have on Bitcoin miners? Let's look at the complete review here.
Bitcoin Hash Rate Reaches More Than 540 Exahashes per Second
On (25/12), Bitcoin, the number one crypto asset, reached a record high in terms of "hash rate" or network computing power, reaching more than 540 exahashes per second. Since the beginning of 2023, Bitcoin's has rate has increased by more than 130%.
However, ironically, this increase has a negative impact on the profitability of mining activities . Even though Bitcoin prices have risen by more than 150 percent since January 2023, the hash rate spike has actually put pressure on mining profitability. Hash price, which measures profitability, fell to $0.09 per terahashes per second per day, down 34% from its peak in December 2023.
This decrease was partly due to the easing of the BRC-20 inscription fever.
Impact of High Bitcoin Hash Rate on Miners
Although a high hash rate indicates better network security, this is not good news for miners because they have to work harder to secure the next block.
This decrease in hash price affects miners' income, making them have to work harder to earn Bitcoin. This state of affairs illustrates a unique dynamic in the cryptocurrency world , where increased network security does not necessarily translate into higher financial returns for miners.
Guide on How to Buy Bitcoin
You can buy Bitcoin (BTC) on the best crypto trading platforms in Indonesia, one of which is Bittime. When this article was written, today's Bitcoin price was observed to have decreased by 0.97 percent over the last 24 hours, making it trade at the level of IDR 659 million.
The way to buy BTC on Bittime is safe and easy. The first thing you need to do is register and complete identity verification. After that, you can deposit funds into your wallet, the minimum deposit is IDR 10,000. BTC is available on Bittime in BTC IDR and BTC USDT pairs .
Click to know details on how to buy Bitcoin . Don't forget, keep monitoring the movement of BTC, ETH, SOL price charts today on the Bittime market to get the latest information about crypto market trends.
Also read:
Crypto Fear and Greed Index: What It Is and Guide
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