For Bitcoin miners, the most recent halving event did not generate the anticipated profit, which is currently prompting them to pursue artificial intelligence.
Some of the most critical actors in the Web3.0 ecosystem are Bitcoin miners. The changes in the network, particularly the halving cycles, have the most significant impact on them, as they are responsible for guaranteeing the supply of BTC.
Many anticipated the emergence of a more sustained favorable trend following the halving of the previous BTC this April. Although the price of Bitcoin remains consistent at or above $60,000, its profitability has declined in recent weeks.
Due to this uncertainty, Bitcoin miners such as CleanSpark, Marathon Digital, and Riot Platforms have been compelled to investigate alternative business opportunities. It is worth noting that most are focusing on establishing AI data centers and other businesses inherently suited to artificial intelligence. Most miners consider the AI ecosystem the next gold mine for three reasons.
1. Increased Bitcoin Mining Difficulty and Decreasing Rewards
The rewards for Bitcoin processors are reduced by 50% during each halving cycle. The trend is generally not progressively linear, despite the expectation that the BTC halving event will ultimately reduce supply and fuel price growth.
Therefore, miners need help finding the reduced incentives and the difficulty of mining a block to be enticing in the long term. By leveraging this, numerous individuals are transitioning to AI, regarded as the future of technology. Due to their infrastructure, bitcoin miners can more easily recreate their data centers to facilitate AI innovators.
2. The Profitability of AI
The outlook for NVIDIA and OpenAI thus far this year suggests that the artificial intelligence sector is profitable.
In June, NVIDIA, an American technology company, achieved a $3 trillion market capitalization, surpassing Apple amid the AI sector’s expansion. The company’s market capitalization is estimated at $3.39 trillion, which many supported due to its contributions to the artificial intelligence sector.
Earlier this month, OpenAI raised $6.6 billion in funding, resulting in a valuation of $157 billion. OpenAI’s dominance in the AI ecosystem is garnering the support of numerous investors. It is revolutionizing the future of internet queries and creativity with products such as ChatGPT and Sora.
Bitcoin miners are confident in securing a portion of the financing to improve their bottom lines, given the significant capital and valuation in the AI sector.
3. AI Regulation to Benefit Bitcoin Miners
Bitcoin remains relatively unclearly regulated despite its widespread use. Conversely, regulators in the United States and the European Union increasingly focus on regulating artificial intelligence.
This regulatory certainty can ensure the sustainability of business operations, which is a critical requirement for Bitcoin miners.
