Bitcoin mining profitability surges as hash rate reaches new peak

Definition

The Difficulty Regression Model is an estimated all-in-sustaining cost of production for Bitcoin. It considers difficulty as the ultimate distillation of mining ‘price,’ accounting for all the mining variables in one number.

Thus, the value reflects an estimated production cost for BTC by the mining industry without requiring a bespoke breakdown of mining equipment, power costs, and other logistical considerations.

Quick Take

Mining is once again profitable according to the regression model, which is an estimated all-in-sustaining cost of production for Bitcoin.
As a result, we are seeing an all-time high in hash rate, with a 20% increase in 2023.
During bear markets, it becomes unprofitable to mine; therefore hash rate drops, which has not been the case during this bear market.
Bitcoin has seen two 10% hash rate drops in the past few months but has surged to all-time highs.

Hash Rate adjustment: (Source: Glassnode)
Difficulty Regression Model: (Source: Glassnode)

The post Bitcoin mining profitability surges as hash rate reaches new peak appeared first on CryptoSlate.

..

Read More

About The Author

Related posts

Leave a Reply

Your email address will not be published. Required fields are marked *