Bitcoin hashrate surpasses 1 Zetahash – A historical milestone but miners are facing the 'profitability problem'
The Bitcoin network has just set a remarkable milestone: the hashrate has for the first time surpassed 1 Zetahash/second (ZH/s) – that is 1,000 times faster than the 1 Exahash/second level achieved back in 2016. This reflects the increasingly greater processing power and higher security of the Bitcoin blockchain, especially in the context of a volatile market due to global policies.
To ensure a stable block creation time of around 10 minutes, the system has automatically adjusted the mining difficulty to a record level of 121.5 trillion, an increase of nearly 7% in the latest adjustment. However, this impressive milestone also comes with growing concerns from miners.
Although #hashrate has surged, the mining revenue per Exahash (hashprice) has plummeted to the lowest historical level – only about 42.40 USD. This is a sign that input costs (electricity, equipment) are rising faster than profits, making the business model of many miners less effective than ever.
In the context of Bitcoin still trading near the $80,000 range and long-term expectations remaining positive, the strong increase in hashrate may indicate long-term confidence in the network, but it also poses significant challenges regarding the financial sustainability for mining units.
Key points to watch for upcoming: Will the market adjust hashprice (through increased transaction fees, price #Bitcoin continues to rise) or will there be a wave of 'withdrawal' from small miners due to cost pressures?