The data shows that bitcoin’s mining rate has already dropped from its new all-time high as the price of the cryptocurrency continues to struggle.
Weekly bitcoin hash rate down sharply
The “mining hashrate” is an indicator that measures the total amount of computing power connected to the BTC network. This might interest you: Pacman Frog (PAC) aims to make a 1000x profit just like Solana (SOL) and Decentraland (MANA)..
When the value of this parameter increases, it means that more miners are online at the moment. Such a trend could suggest that miners find the network attractive at present.
On the other hand, a drop in the indicator suggests that some miners are pulling their machines off the grid, possibly due to low profitability.
In general, high hash rate values result in better blockchain performance, while low values can result in slower transaction processing.
Here is a graph showing the trend of the bitcoin hashrate over the last year:
As you can see from the chart above, Bitcoin’s weekly mining hash rate hit a new all-time high (ATH) of 231 EH / s just a few days ago.
However, for around two days, the metric has already seen a strong downtrend and its value is now around 200 PE / s.
The miners’ earnings depend mainly on two things: the value of BTC in USD and the total hash rate of the network.
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Since miners normally pay their electricity bills and other operating costs in dollars, the dollar price of BTC matters to them.
Due to the recent slump in bitcoin prices, miners’ block rewards (which have a fixed value as a whole) are now less valuable.
The hashrate represents the level of competition between individual miners. The higher its value, the more rewards are divided among the miners.
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Therefore, high throughput can lead to lower rewards for all or some miners (unless they keep up with the competition by expanding their facilities).
Both of these factors haven’t worked from the bitcoin miners’ perspective recently, so their revenue has been hurt.
With the continued struggle over cryptocurrency prices in recent days, it appears that miners with low-efficiency machines or high electricity costs have started taking some devices offline, thus seeing a drop in hashrate.
As of this writing, bitcoin’s price is hovering around $ 19.4,000, down 29% over the past seven days. This might interest you: Binance pulls LUNA off the platform, while Terra offers token burning to save UST.