Bitcoin Miners Face Crunch: Hash Price Hits Historical Lows

Bitcoin (BTC) miners are facing a tough time. The worrying developments are reflected in the so-called hash price, which appears to be heading towards a historic low.

According to data from Hashrate Index, the hash price fell 52% this week, to $0.0459 per terahash per second.

Bitcoin adoption is disappointing, despite positive developments

The hash price is a measure of miners’ revenue per terahash (TH) of computing power they contribute to the network. It indicates how much revenue a miner can expect for every second their equipment performs one terahash of calculations.

The hash price is influenced by the price of bitcoin, the rewards for mining (such as block subsidies and transaction fees), and the difficulty of mining. A lower hash price means less revenue for miners, which can force them to rethink their operations or work more efficiently.

Survival for BTC miners

Adam Ortolf of Upstream Data notes the industry is now in “survival mode.” According to Ortolf, this will remain the case as long as the hash price remains around $0.05 TH/s.

Some miners already have to shut down some of their machines that are not profitable. More could follow in due course. However, there is hope, there may still be mining devices that are profitable, according to Mitchell Askew of Blockware Solutions.

Heat wave America could further reduce hash rate

As if they weren’t having a hard enough time already, American miners could face even more challenges this summer. This has to do with the expected hot temperatures in the United States (US), which may cause the hash rate to drop again.

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In the summers of 2022 and 2023, miners had to scale back their activities due to overheating of their equipment and increased pressure on the energy grid. These Application-specific Integrated Circuit (ASIC) computers require effective cooling, which becomes more difficult during warm periods.

In addition, the increased demand for electricity from household air conditioners may limit miners’ energy consumption. Colin Harper of the Luxor Hashrate Index expects this trend to continue this year.

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