Since the start of this month, the Bitcoin hash rate has dropped by 14% from its all-time high. According to experts, the current hash rate of Bitcoin is 234 EH/s (exahashes per second). Moreover, from Nov 22, the coin saw a sharp drop in the metric with an 11 % slump within a week.

Miners and lenders of ASIC (application-specific integrated circuit) are dumping their machines, which is leading to a supply shock and putting relevant downward pressure on the ASIC market, as per the hashrate index. This will impact the demand and supply and prices of the new and old machines.

Usually, Bitcoin mining profitability depends on timing. Hash rate and bear market collapse is a common scenarios in the crypto industry as the markets are cyclical. Since November this year, the ASIC miner prices got dropped by around 80%.

At present, the payback period is for 29 months, the payback period will shorten as the price of ASIC will fall. The highest payback period was seen in the month of July 2022 as the expected payback period remained 58 months, however, it was 48 months for buyers in the month of September 2022.

Hash rate which is also seen as profitability is at its lowest at just $0.058 at present. It has fallen 84% since November 2021. The Hash rate is calculated in dollars per day per terahash per second ($/d/TH/s).

At low levels of Hash Rates, the average revenue for machines on the daily basis such as Antminer S19j Pro (104 TH/s) has gone down to just $6. In areas where electricity prices are surging high, the users of Antminer S19j Pro may incur more losses.

At Peak Blockchain, we’re always on the lookout for the latest developments in blockchain technology. We’ve also added our Market Analysis on Bitcoin Mining that have been launched recently to our Blockchain Knowledge Base, so you can stay up-to-date on everything that’s happening in the space.