Hashprice

Hashprice combines four moving parts into one number: the block subsidy, transaction fees, the bitcoin price and total network hashrate, through difficulty. Dividing daily miner revenue by the hashrate that produced it gives the expected income for each terahash or petahash a miner points at the network. The term was popularised by the mining services firm Luxor, which publishes a hashprice index.

Miners compare hashprice with their cost per unit of hashrate, mainly electricity and hardware, to see whether machines are profitable. Because it falls when difficulty rises or the price drops, it is a sensitive indicator of stress in the sector. Each halving cuts the subsidy in two, so hashprice drops sharply overnight unless the price or fees rise to compensate.

Hashprice is a gross revenue measure: it ignores power costs, pool fees, hardware depreciation and downtime. It changes daily with the market and can be distorted by short fee spikes. Derivatives such as hashprice forwards let miners lock in future revenue, but small operators rarely have access to them.