Bitcoin network hits record level of power, but falling profits push miners to AI.
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Key Points :
Bitcoin rose more than 12% in the past seven days and the network hash rate hit an all-time high.
Another key metric showed itâs never been more difficult to make money in bitcoin mining.
Core Scientific, the top-performing publicly traded miner, has appeased Wall Street by moving into artificial intelligence and high-performance computing.
A Bitcoin sign is seen in the main hall during the Bitcoin 2024 conference at Music City Center on July 26, 2024, in Nashville, Tennessee.
It was a week of extremes for bitcoin
enthusiasts.
On the plus side, the cryptocurrency rose 12% in the past seven days and the network hash rate hit an all-time high. Hash rate refers to the collective computing power of all miners in the bitcoin network, and the recent high suggests there have never been more miners online, actively securing the network.
At the same time, another key metric this week showed itâs increasingly difficult to make money in the mining business. Investment bank Jefferies wrote in a report that crypto mining was âsignificantlyâ less profitable in August. The average daily revenue per exahash, or income per miner, fell by 11.8% from the prior month, Jefferies said.
As bitcoin becomes more of an established, and even mainstream part of the economy, the days of easy money appear to be in the rearview mirror. Institutional capital has poured in since the SEC approved spot bitcoin exchange-traded funds in January, and the bitcoin network is more robust than ever, held together by a vast and decentralized network of miners securing transactions with the help of large banks of machines.
