AI Makes Crypto Mining More Advantageous: Report
- Some crypto miners are turning to AI.
- Crypto miners generate revenue in part thanks to AI customers.
AI is still a potential to be mined in many areas, it can be stated that the cryptocurrency mining industry has changed as crypto miners have diverged after the Ethereum revolution last September, Bloomberg reported.
Companies that utilized and hosted GPUs, or graphics processing units, saw a significant portion of their once-thriving company disappear against the background of an increasingly challenging crypto environment.
Some cryptocurrency miners are turning to artificial intelligence. Hut 8 reported that after only one year of existence, its HPC division produced over $16.9 million in sales in 2022, fueled in part by AI clients. Hive Blockchain, which spent $66 million on GPUs in early 2021, plans to increase its HPC income to $10 million by 2024.
Hut 8 Chief Executive Officer Jaime Leverton said in an interview:
“If you can reapply some of that investment in the GPU mining infrastructure and convert it to new cards and workloads, it makes sense.”
Not all cryptocurrency miners are in a position to profit from the AI hype or the surplus of pricey chips on hand. According to Bitpro Consulting, which provides mining brokerage services, 5% to 15% of current crypto-oriented GPUs may be repurposed for artificial intelligence and related applications like computer vision and generative graphic design.
Core Scientific, the biggest publicly traded Bitcoin miner by processing power, declared bankruptcy last year, and many miners have warned of liquidity problems. Yet, there might be an opportunity for miners to reclaim the $15 billion Bitpro estimates they spent on processors.
Machine learning may infuse much-needed efficiency into various economic sectors, from hospitality to investment banking too, most notably, cryptocurrencies, in addition to boosting intellectual progress.
When crypto and artificial intelligence combine their powers, they will really be a force to be reckoned with. It has the potential to remove friction from the crypto user experience, resulting in a truly smooth end-to-end Web3 trip.
There will be no more clumsy transaction approval procedures or switching between programs. Artificial intelligence will automate the time-consuming background processes of crypto protocols, allowing users to have a one-click experience similar to Amazon’s.
According to Ethan Vera, chief operations officer of Luxor Technologies Inc., a Bitcoin-miner products and services firm, miners may find it difficult to compete with big data services providers such as Microsoft Azure or Amazon Web Services.
AI customers may already access widely used tools, systems, and support professionals on these platforms. Yet, miners’ skills in energy management may provide them an advantage, considering that artificial intelligence, like crypto mining, requires a lot of energy.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
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