The Bitcoin network reached a historic milestone on Christmas Day when it recorded an all-time high mining hash rate of 544 exahashes per second. This jump is consistent with the digital asset’s outstanding price trend, which has increased by 163% since the year’s beginning and reflects a notable increase in hash rates.
Max Keiser, a prominent supporter of Bitcoin and an advisor to the president of El Salvador, recently posted on social media with an indicated price for Bitcoin that is more than $400,000. Although this leads to conjecture over possible pricing models, the real-world ramifications are placing more and more strain on miners who are already seeing a significant decline in profitability.
https://x.com/maxkeiser/status/1739317451404263889?s=20
For the mining community, the simultaneous spike in hash rates and BTC price offers a conundrum. A higher hash rate means that miners have to work harder to get the next block, which translates into higher operating expenses and a more difficult operating environment.
Inscriptions hype
The hash price, a crucial indicator of mining profitability, has fallen over the previous week, tempering the excitement surrounding the record-breaking hash rate. The current fall in interest in the BRC-20 ordinal inscription trend is related to its current standing of $0.09 per terahashes per second per day.
A notable fall from the Dec. 17, 2023, peak highlights the drop in profitability. This change in the dynamics of hash prices is a direct result of the waning interest in inscription hype, which during their peak drove up demand and, consequently, raised transaction costs.
