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The mining difficulty has also surged, creating a more competitive environment, with the difficulty crossing a record of 35.6 trillion hashes. As a result, the ‘hash price’—miners’ daily revenue per terahash—is down dramatically, declining approximately 81% from October 2021’s high of 42 cents per terahash per second. This stark decline crushes profit margins for miners with high fixed costs, pushing many toward liquidity crises if Bitcoin prices do not rebound soon.
The Investment and Expansion Outlook
Despite the difficulties, miners are expanding their hash power:
- The top 25 public miners, representing about a quarter of Bitcoin’s total hash rate, aim to increase their output from roughly 53.7 exahashes to an estimated 80-81 exahashes by year-end.