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Bitcoin [BTC] has broken all the hashrate records ever since its inception. The hashrate of the top cryptocurrency has been witnessing a continuous increase whereas the mining profit has been fluctuating over the years.
Bitcoin [BTC]’s hashrate surged to 52 quintillions per second on 4th August, but the increase in the hashrate did not have a significant impact on the miners’ revenue. Moreover, Bitcoin hashrate has tripled since the beginning of the year.
Bitcoin [BTC] hashrate refers to the speed of mining operations. Bitcoin mining requires the mining machine to solve complex computations and finding the blocks. This would require the machine to make thousands or more guesses per second in order to solve the mathematical puzzle. Hashrate is calculated by hashes per second.
Bitcoin mining, hashrate, and difficulty level are intertwined on various levels. If the hashrate increases, the difficulty level increases and this, in turn, would lead to the miners earning a certain amount of BTC and a portion of the transaction fees.
However, the recent increase in Bitcoin mining hashrate has not resulted in the increase of the Bitcoin miners’ profitability. This could be the result of the electricity cost required for mining. More the electricity cost, lesser is the profit earned by the miner.
The cryptocurrency market speculators believe that most of the Bitcoin miners who haven’t updated to the recent machines because of which the electricity cost incurred by them would have been high. This, in turn, resulted in small miners earning less profit.
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