Bitcoin Mining Achieves All-time High Hash Rate on Christmas day which created a challenge for the miners who are already struggling with the declined profits. The high demand leads to high transaction fees as observed at the time of inscription excitement.
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BTC Mining achieved an ATH Hash rate on Christmas Day
On Christmas Day, Bitcoin mining witnessed an unparalleled surge in hash rate, reflecting the network’s processing power. This development added further pressure on miners already struggling with declining profits.
According to information from Blockchain.com, on December 25th, Bitcoin achieved its highest-ever hash rate, reaching an impressive 544 exahash (EH/s) per second.
Breaking Hash Rate Records
Confirmation of this data, which highlighted a peak in the average hash rate over the weekend, came from Bitinfocharts, a blockchain data analysis platform. Throughout the year, the network hash rate more than doubled, registering a 130% increase since January.
While Bitcoin’s hash rate exhibited an upward trend, the asset’s price closely mirrored this trajectory, soaring by over 150% since the beginning of 2023. The network hash rate surpassed the 500 EH/s milestone in late November.
Will Clemente, co-founder of Reflexivity Research, shared insights on the matter, emphasizing the resilience of the decentralized open-source money network post-China’s mining ban:
“The mining ban in China during the summer of 2021 is almost non-existent. Imagine trying to fade the world’s most secure decentralized open-source money network, I can’t imagine.”
Inscriptions Excitement and Hash Rate
Although a high hash rate is favorable for theoretical price models like hash-adjusted price, it poses challenges for miners who must intensify efforts to secure the next block.
The hash price, an indicator of profitability, experienced a decline in the past week as the enthusiasm surrounding BRC-20 inscriptions decreased. HashrateIndex currently places the hash price at $0.09 per terahash per second daily.
Profitability has decreased by 34% since December 17th, 2023, when it reached its peak for the year at $0.136/TH/s daily.
The hash price typically surges during periods of high demand, leading to elevated transaction fees, as observed during the recent inscription excitement. Checkmatey, an analyst from Glassnode, commented on the situation:
“Since February, we are approaching almost a full year without completely clearing Bitcoin mempools, maintaining high fee pressure.”
Conclusion
To conclude, the Bitcoin mining rate reached an all-time high on Christmas day surpassing 544 EH/s. The mining rate has doubled this year with a 180% increase in the price of Bitcoin. Bitcoin mining hash rate increases during periods of high demand.
With ETF approval and Halving approaching, it is expected to reach a new ATH surpassing the current ATH, with an increase in the bitcoin price expected with the coming events. It is important to vigilantly keep an eye on the market because it is highly volatile and a bear or bullish trend is possible even though the market is currently in the bull run.
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