Bitcoin network computing power — or mining hash rate — reached a new all-time high on Christmas day, but has put putting more pressure on miners amid a slump in profitability.
On Dec. 25, Bitcoin’s hash rate reached an all-time high of 544 exahashes per second (EH/s), according to Blockchain.com. The data was confirmed by Bitinfocharts, which reported an average hash rate peak over the weekend.
It comes as network hash rates have more than doubled this year, climbing 130% since January.
Over the same period that BTC hash rates have increased, the asset’s price has virtually mirrored the chart, climbing more than 150% since Jan. 1, 2023.
Reflexivity Research co-founder Will Clemente looked at the hash rate on a logarithmic scale commenting, "The summer 2021 China mining ban is barely a blip," said Clemente. "Imagine fading the most secure decentralized open-source monetary network on the planet, couldn't be me."
A high hash rate may be nice for theoretical price models such as implied hash-adjusted price, but it is not good news for miners who must work harder to secure the next block.
Hash price, a measure of profitability, has fallen over the past week as the BRC-20 ordinal inscription craze cooled. Hash price is currently $0.09 per terahashes per second per day, according to HashrateIndex.
Related: Bitcoin revenue per terahash nears record lows as hash rate soars
Profitability has fallen 34% since its 2023 high of $0.136/TH/s/day on Dec. 17. Hash price often spikes during elevated demand, causing high transaction fees, such as during the recent inscriptions frenzy.
“We’re approaching almost an entire year without fully clearing Bitcoin mempools, having sustained elevated fee pressure since Feb,” observed Glassnode analyst “Checkmatey.”
Network hash rates first passed the milestone 500 EH/s figure in late November, as reported by Cointelegraph.
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