Bitcoin has recorded a new all-time high in computing power, as miners face increasing pressure on profits due to rising mining difficulty and falling prices. According to recent data, the hash rate on the Bitcoin network reached 1.13 exahashes per second during October, the highest level in the network’s history, reflecting increased participation in Bitcoin mining globally.
However, this surge in computing power has not translated into financial gains, as miners are facing mounting pressures from rising energy costs and block difficulty, as well as record liquidations reaching $19 billion. Analysts point out that while the rising hash rate is crucial for the security and stability of Bitcoin, it does not necessarily mean increased profits; often, it may lead to a reduction in profit margins with increased competition.
Data shows that daily revenue per exahash decreased by about 7% compared to September, dropping to around $48,000 from $52,000, amid a decline in Bitcoin prices of approximately 12% since the beginning of the month. This decline in market value coincided with a spike in operating costs, particularly following the rise in oil and gas prices, which are significant factors in energy consumption for mining farms.
In regions such as Europe and the United States, some miners faced additional issues related to power outages or rising tariffs, making continued mining less economically viable at present. Experts believe the next phase may see a slowdown in hash rate growth, with a possibility of a temporary decrease in mining difficulty to relieve pressure on smaller miners.
This scenario reflects a delicate balance within the Bitcoin ecosystem between network security and economic return. While Bitcoin continues to establish itself as a key digital asset leading the cryptocurrency sector, current mining challenges highlight the fragility of profitability for participants in the system, particularly as the market enters a phase that demands higher operational efficiency and more sustainable energy strategies.
