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According to a report by virtual asset manager CoinShares, Bitcoin miners will possibly use synthetic intelligence (AI) in energy-safe locations after the blockchain is halved in 4 years.
The halving, which occurred on Friday night, slows the growth rate of bitcoin’s origin by 50%, which could lead miners to look for other sources of income.
CoinShares noted that mining corporations such as BitDigital, Hive, and Hut 8 are already generating profits through AI, while TeraWulf and Core Scientific either have existing AI operations or plan to expand into this space.
“This trend suggests that Bitcoin mining would possibly move to locked energy sites, while AI investments would accrue in more robust locations,” the authors wrote.
This halving is expected to result in a very significant increase in prices for miners, and overall electricity and generation prices are expected to nearly double. The average cost of electric power generation in the fourth quarter is around $16,300 per bitcoin, and is expected to rise to around $34,900 after the halving. Miners can try to mitigate price increases consistent with optimizing energy prices, expanding mining efficiency, and purchasing hardware at a lower price.
Hashrate refers to the computing power required to validate transactions and load new blocks onto the Bitcoin blockchain. This is a very important metric for evaluating the robustness and security of the blockchain network. An increase consistent with the hash rate indicates a more secure network, as it becomes more and more difficult for malicious actors to disrupt the network with a 51% attack. Hashrate is measured in hashes per moment, with Bitcoin’s existing hashrate being 89 exahashes per moment (EH/s).
According to CoinShares’ forecasts, the Bitcoin network’s hashrate could reach a rate of 700 exahashes by 2025. However, it could drop as low as 10% after halving, as miners shut down unprofitable machines. The asset manager also expects hash costs to rise to fall after the occasion to $53/ph/day.
The report highlights how mining companies are actively managing their financial liabilities, with some money left over to pay off their debts. This strategy could help mining companies navigate the challenging post-halving environment and maintain monetary stability.
As the Bitcoin mining industry adapts to new post-halving conditions, the transition to AI in energy-secure locations may be more pronounced. The prospect of higher revenue from AI operations may simply provide miners with a viable option to offset the related higher prices. with bitcoin mining.
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