Bitcoin hashrate [BTC] breaks records while diminishing the profitability of miners

Bitcoin [BTC] has broken all hashrate records since its inception. The hashrate of the most important cryptocurrency has seen a steady increase as the mining profit has fluctuated over the years.

Bitcoin [BTC] hashrate from September 2017 || Source: Blockchain

The Bitcoin hashrate [BTC] rose to 52 quintillion per second on August 4, but the increase in the hahrate did not have a significant impact on the miners' revenue. Furthermore, Bitcoin's hashrate has tripled since the beginning of the year.

Bitcoin [BTC] mining revenue from September 2017 || Source: Blockchain

Bitcoin hashrate [BTC] refers to the speed of mining operations. Bitcoin mining requires the mining machine to solve complex calculations and find the blocks. This would require the machine to make thousands or more hypotheses per second to solve the mathematical puzzle. Hashrate is calculated from hashes per second.

Bitcoin mining, hashrate and difficulty level are interwoven at various levels. If the hashrate increases, the level of difficulty increases and this, in turn, would lead miners to earn a certain amount of BTC and a portion of the transaction fees.

However, the recent rise of the Bitcoin mining hashrate has not led to an increase in the profitability of Bitcoin miners. This could be the result of the cost of electricity required for the mining sector. The lower the cost of electricity, the less profit earned by the miner.

Speculators in the cryptocurrency market believe that most Bitcoin miners have not updated their recent machines because of which the cost of electricity sustained by them would have been high. This, in turn, led small miners to earn less profit.

Cantonrd, a Twitterati says:

"Since January, the hashrate of bitcoin mining has tripled, which means that a huge amount of new or more efficient rigs have comeonline .Thismeans that miners who they were not able to upgrade their machines or find cheaper electricity had to face a sharp decline in profitability "

ecurrencyhodler, a Twitterati says:

" # Bitcoin miners are either disappointment, devotees, stacked with $$, and / or have incredible confidence that their profit margins will be exponentially justified in the future.The hashrate keeps increasing while profitability decreases. "

Surreal10n, another Twitterati says :

"It could be some kind of new kind of stealth machine mining asthma … It could be that the miners have become more efficient and have less costs. inatori "