By Alicia Maher
The total hash rate of the Bitcoin network is currently at 240 EH/s. It is expected to increase much higher than that. The network has now attained its all-time high hash rate and surpassed many projects.
Higher Hash Rates Than Ever
Bitcoin’s current hash rate is about three times its low back in July 2021. It was when miners left China en masse after the government’s ban. The hash rate fell to a low of two years of about 89 EH/s back then.
The increased hash rate now comes after a commensurate increase in mining difficulty. Bitcoin difficulty, thus, witnessed its sharpest difficulty so far this year on Monday. It increased by a high number of 13%.
Monday’s increase has now put Bitcoin’s mining difficulty at double its July 2021 level. The mining difficulty is now 35 trillion. It will seriously strain Bitcoin miners who are already stressed, decreasing their income further.
Exahash reveals that miners throughout the Bitcoin network are squeezed off all profits. Exahash is a metric that measures miners’ income across the network. The metrics show miners’ daily profit relative to their contributions to the total hash power.
Miners’ Dilemma
It is measured when the total BTC or USD income is divided by the current hash rate. Glassnode’s report also shows that miners’ income has been decreasing steadily. The report puts the beginning of this trend at the end of 2021.
The profit accruing to Bitcoin miners might decrease further with current realities. This is because the asset’s price is flat at $20,000. Miners’ revenue is currently at 4 BTC per day or worth $80,000 per day.
Energy price is expected to rise through the course of this winter. Miners are at risk of seeing far lower revenue. Any instability in the price of Bitcoin will put further pressure on the industry and income.
Bitcoin suffers the fate of most crypto assets in the market due to economic factors. Central banks’ crusade against inflation is telling heavily on the stock market. That has in turn resulted in a blood bath in the crypto space.
Analysts expect that crypto will disentangle from the stock market now that a recession might be imminent. Crypto might serve as a hedge for investors against falling currencies. Hence, the crypto market’s resurgence is dependent on investors’ massive returns.