U.Today - On Christmas day, the Bitcoin network achieved an historic milestone, recording an all-time high mining hash rate of 544 exahashes per second. This surge, reflecting a remarkable increase in hash rates since the year's commencement, echoes the digital asset's impressive price trajectory, which has soared by 163% since the beginning of the year.
, an influential advocate and advisor to the president of El Salvador, recently took to social media, suggesting an implied hash-adjusted price for that surpasses $400,000. While this sparks speculation about potential price models, the practical implications are exerting increasing pressure on miners grappling with a substantial dip in profitability.
The parallel surge in both hash rates and presents a paradox for the mining community. A heightened hash rate signifies that miners must intensify their efforts to secure the next block, translating into elevated operational costs and a challenging operational landscape.
Inscriptions hype
The profitability decline is underscored by a significant decrease from the 2023 peak on Dec. 17. This shift in hash price dynamics is a clear reflection of the diminishing enthusiasm surrounding inscription hype, which, in their heyday, led to increased demand and subsequently, elevated transaction fees.