Upon successful completion his “halves” Bitcoin holds firm at $66,000AND Cryptocurrency stocks are in celebration mode.
Now people are wondering what will happen to Bitcoin miners considering that the reward has dropped from 6.25 Bitcoin to 3.125 Bitcoin.
Some say that generative AI may soon play a role. Adam Sullivan, CEO of Core Scientific, a Bitcoin mining company, believes that Bitcoin mining infrastructure needs to be improved and that artificial intelligence can be very helpful in generating Bitcoin, per a CNBC report. According to CNBC, several mining companies already operate or plan to support AI, including BitDigital, Hive, Hut 8, Terawfulf and Core Scientific.
Rob ChangCEO Gryphon Digital Mine and former CFO of Bitcoin mining company Riot Platforms told Quartz via email that to “survive” the halving, miners need to become as operationally productive as possible, and artificial intelligence can play an vital role.
“We also focused on artificial intelligence given its attractive fresh block profile solution, the addition of which does not fundamentally change the company’s current profile,” he wrote.
However, he added that the apply of artificial intelligence in mining involves certain risks. “Focusing on high-quality operations sometimes comes with a cost of growth that investors typically don’t pay for up front, especially in scorching markets,” he said.
“The benefits of being a growth hare tortoise are such that investors typically only see the benefits of quality management after a down cycle has occurred and questionable decision-making by growth-oriented miners has been exposed.” Chang explained that diversifying into AI or staking is not necessarily a bad move, but the benefits should be carefully weighed against the drawbacks.
When asked about how Bitcoin miners can function in the face of a drop in reward, Chang said that even miners without the latest generation of hardware can remain competitive. This can be achieved by operating within a highly productive and low-cost framework.
“This typically means starting in regions with much lower electricity costs, such as areas with surplus power generation that lack sufficient local demand,” he wrote.
“These geographic advantages enable the operation of older, less productive machines to maintain profitability through reduced operating costs.”
