Bitcoin mining profitability has dropped to the lowest level in the last five years: record hash rate and increased competition.
In recent times, the hash rate of the Bitcoin network has reached unprecedented levels, affecting the profitability of mining. The computational power required for mining has increased significantly, making the activity more competitive and less profitable. Recently, the hash rate of the network reached 635 EH/s, a significant increase from 161 EH/s in November 2021.
According to Hashrate Index data, the hash price, which is the daily earnings per terahash per second (TH/s), dropped to the lowest level in the last five years, at $44.58 on July 5th. However, in recent days, profitability has been slowly increasing again, partly due to the rise in the price of Bitcoin.
With the halving that occurred in April and the evolution of the industry, miners must adapt to the new market conditions to keep their operations running and aim for future growth. Low electricity costs and the use of more efficient mining equipment are the two key factors that enable miners to remain profitable and survive in the market.
