All-time low: each mining hash today generates less bitcoin than ever

All-time low: each mining hash today generates less bitcoin than ever

The amount of bitcoin generated by each mining hash is on a steady decline, and this has recently led it to hit a record low of 501 satoshis per terahash of power per day (SAT / TH / D).

The aforementioned record was recorded last Sunday, December 26. However, to this day, Bitcoin miners average a hashprice of 542 SAT / TH / D.

The hashprice is a value that reflects the productivity of a miner according to his hash rate per day. The hashprice can be calculated in US dollars (USD) or bitcoin satoshis (SAT); for this reason, it is usually represented as USD or SAT, per tera hash, per day.

The hashprice in US dollars (USD) is a value greatly influenced by the cryptocurrency market and its ups and downs. While the hash price in BTC or satoshis is a value that depends, above all, on internal aspects of the network, such as its hash rate, the difficulty of mining and the halvings.

All-time low: each mining hash today generates less bitcoin than ever
Annual graph of the Bitcoin mining hashprice reflected in satoshis (yellow) and USD (blue). Source: Braiins.

The sustained decline in the hashprice reflected in satoshis in Bitcoin mining has logical reasons. Every four years or so, a Bitcoin halving occurs, reducing the reward per mined block by half. Added to this is the increase in mining power caused by a growing number of people mining and the development of more powerful hardware. The direct consequence of the increase in the hash rate in Bitcoin is a greater difficulty of mining on the network.

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The set of reasons mentioned in the previous paragraph plays an important role in the fall of the hashprice in Bitcoin, since causes miners to get less satoshis relative to their mining power. Therefore, it would not be unreasonable to think that with the passing of time the hash price reflected in satoshis is even lower.

Fortunately, thanks to the rise that bitcoin experienced in the market during the last quarter of 2021, mining is still profitable and those who are dedicated to it perceive profits. However, when thinking ahead, accumulating satoshis could be more favorable than obtaining USD today. Especially if you take into consideration how inflation has been affecting the US currency. Regarding this, CriptoNoticias recently published an article about the loss of value of the dollar.

The cost of a Bitcoin mining hash reflected in USD

As of today, the Bitcoin mining hashprice reflected in USD is at 0.26 USD / TH / D. A figure that, although it seems low compared to the 0.40 USD / TH / D that it showed in October and November, remains above the 0.18 USD / TH / D that it reached in June, at its lowest of the year.

The variations presented by the hashprice in USD are closely related to those of the cryptocurrency market; although, they do not always go hand in hand. For example, when the annual low at the end of June happened, the price of bitcoin on the market it was around USD 33,000. Despite BTC falling below $ 30,000 in July, the USD hashprice took off and remained above $ 0.30 / TH / D.

The value that made the July rally possible was the Bitcoin mining difficulty adjustment that took place back then. While the hash rate gradually recovered after the ban on Bitcoin mining in China, difficulty setting allowed miners to get bigger rewards in BTC and, consequently, a higher return on your work also in USD. Bitcoin mining difficulty dropped 28% in July, as reported by CryptoNews.

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