Rebeca Moen
January 25, 2025 16:03
Following the 2024 Bitcoin, the miners diversify into AI and HPCs to stabilize the source of revenue, utilizing the existing infrastructure to meet the increasing demand for AI.
Half of 2024 Bitcoin has triggered significant changes among Bitcoin miners, and is currently exploring artificial intelligence (AI) and high -performance computing (HPC) as a strategy for reducing profitability and market volatility. According to blog.bitfinex.com, this strategic pivot uses the existing infrastructure of the miner to meet the increase in demand for AI workloads, providing more stable revenue sources than the existing Bitcoin mining.
Did the Bitcoin miner find another revenue source in half of 2024 Bitcoin?
Recently, the transition to AI and HPC infrastructure by Bitcoin miners reflects the development of the mining industry. The miners who are historically dependent on the profitability of Bitcoin mining, which have been influenced by 2024 Bitcoin, are now exploring new profits by using the established infrastructure. Such transitions arise as the demand for the computational capacity of the AI required by the development of production AI and machine learning technology increases.
The core of these changes is the ability of miners to change existing assets such as low -cost power access and large data centers. Some mining companies have started their partnerships with AI companies or are independently renovated to accommodate AI workloads. For example, the hosting contract of Core Scientific with AI -centered Coreweave is expected to generate billions of sales for 12 years. Similarly, HUT 8 Corp. And IRIS ENERGY integrating AI into operation by distributing NVIDIA GPUs for AI modeling and cloud services.
What does this pivot for AI mean to the bitcoin mining industry?
The transition to the AI and HPC of the Bitcoin miner is mainly led by economic necessity and strategic opportunities. In 2024, half of the Bitcoin block rewards significantly reduced the profitability of mining operation, amplifying the impact of the price volatility of Bitcoin and increased the network difficulty. As AI diversified, the demand for AI infrastructure continues to grow, providing more stable and predictable revenue sources as it continues to increase due to the development of creation AI and machine learning.
This change raises questions about the long -term impact on Bitcoin network security, which depends on trading fee -based models and distributed mining ecosystems. As miners allocate resources and power capacity to the operation of AI, the total hash rate of the network can be reduced, which can increase the vulnerability of attacks. However, this risk can be relaxed with new and efficient mining hardware and difficulty adjustment algorithms of Bitcoin, which maintains regular mining intervals.
Was AI more profitable to mining than Bitcoin mining?
Compared to the traditional mining of Bitcoin, AI’s profitability depends on factors such as energy costs, hardware investment and market situations. Workroads related to AI workloads, especially large language models or HPCs, provide predictable sources of revenue through long -term contracts with enterprise customers. For some mining companies, these contracts provide AI as an attractive diversification strategy, providing an unresponsive level of financial predictions.
Bitcoin miners have greatly avoided diversifying them in mining other digital assets because of the special characteristics of the existing hardware. Bitcoin mining relies on ASIC optimized for SHA-256 Hasing algorithms and cannot easily change its use for other cryptocurrencies. The Pivot of AI provides more versatile opportunities to support AI workloads using the general purpose GPU using existing facilities.
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