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Bitcoin Mining Enters Zettahash Era – Profits Become Scarcer
According to a recent report by GoMining, Bitcoin mining has reached a historic milestone by entering the Zettahash era, surpassing a computing power of over 1 ZH/s on a seven-day average. This significant increase in hashrate is attributed to rapid hardware improvements, new data centers, and an expansion of industrial activities, indicating that mining is no longer dominated by small players but resembles energy infrastructure.
Despite the growth in hashrate, miner profitability has declined sharply. The report highlights that miner revenues are now almost entirely dependent on the Bitcoin price and difficulty level, with other factors such as transaction fee spikes or higher block subsidies becoming increasingly rare. As a result, miners are operating with much lower profit margins despite higher capital and energy investments.
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"The economic outlook for miners is now more heavily reliant on fluctuations in the Bitcoin price, as internal balancing mechanisms are largely absent," the report states.
In 2025, transaction fees contributed less than 1% of total block rewards, providing minimal relief to miners post-halving. The block subsidy of 3.125 BTC has not been sufficient to offset revenue losses, further intensifying the pressure on miners.
As of November, the hashprice fell to a record low of nearly $35 per PH per day, remaining low until the end of the year. This decline has left miners with little room for operational errors, as they struggle to maintain profitability.
Shutdown Prices and Economic Triggers for Miners
Current data indicates that widespread S21 miners reach their breakeven point at a Bitcoin price between $69,000 and $74,000, given the current difficulty level and electricity prices around $0.08 per kWh. Below this range, many miners operate at breakeven or incur losses, while newer, more efficient machines remain profitable even at lower prices.
This situation does not guarantee a price floor for Bitcoin, as markets can fall below mining breakeven levels. However, it creates a behavioral threshold; if Bitcoin remains below critical shutdown values for an extended period, weaker miners may sell their reserves, shut down equipment, or reduce their engagement, potentially exacerbating market volatility.
Today, Bitcoin mining is more robust and industrial than ever, yet this scale also brings increased sensitivity. As hashrate rises and fees decline, the Bitcoin price becomes more crucial for miner stability than before. Values around $70,000 are economically significant, not merely due to chart patterns, but because the network's cost structure dictates this necessity.
In summary, the Bitcoin mining landscape is undergoing significant changes, with increasing hashrate and declining profitability posing new challenges for miners. The reliance on Bitcoin price stability is more pronounced than ever, making it a critical factor for the industry's future.
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