Bitcoin miners migrate to AI in face of low crypto trading profits

The decline in cryptocurrency miners’ profits is paving the way for other scenarios, such as artificial intelligence and high-performance computing (HPC).

The volatility in the price of bitcoin and other digital assets has not prevented the industry from growing. However, miners have seen profits decline. The result is the search for other opportunities.

With the rise in the value of bitcoin in recent days, the cryptocurrency’s hash rate has also risen, reaching its all-time high. “The hash rate is a metric that reflects the total computational power of the miners operating on the network, securing transactions and maintaining the decentralized system. This increase suggests that there have never been more active miners on the network, which at first glance might seem positive.”

But there is another indicator that demonstrates the increasingly compelling difficulty of generating income through BTC mining.

In a report by the investment bank Jefferies, it is noted that “average daily revenue per exahash (a unit of measurement used in mining) fell 11.8 % in August, compared to the previous month.” This drop is due, in part, to the deepening competition between miners, “as a greater number of machines are competing for the same rewards.”

miners. In this sense, and faced with falling profits, mining companies are making their way into other technological areas.

“Diversification into AI is not only providing a new source of income for mining companies, but is also allowing them to use the energy they already consume more efficiently.”

It is important to note that the latest generation machines have the capacity to process twice as much data as previous models “without the need to increase energy consumption or expand facilities. This improvement in efficiency is crucial at a time when economic conditions for bitcoin miners are increasingly challenging.”

Mining companies are evaluating the great potential of the convergence between cryptocurrency mining and high-performance computing.

M.Pino

Source: criptodirecto

(Reference image source: Pierre Borthiry – Peiobty in Unsplash)

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