How Does a miner’S Profit Margin Relate to the Network’s Hash Rate?

A miner's profit margin is inversely related to the network's hash rate, assuming a constant cryptocurrency price and difficulty adjustment schedule. As the hash rate increases, the competition for block rewards intensifies, meaning each individual miner receives a smaller fraction of the total rewards.

If the cost of electricity and hardware remains constant, the reduced share of rewards lowers the profit margin. Conversely, a drop in hash rate increases an individual miner's profitability.