In a report published on Friday, CoinShares (CS) indicated that following the bitcoin (BTC) halving, miners are expected to transition to using artificial intelligence (AI) in energy-rich locations due to potential higher profits.
The quadrennial halving took place on Friday night, slowing the supply of bitcoin by 50%.
Based on Coinshares’ report, mining companies such as BitDigital (BTBT), Hive (HIVE), and Hut 8 (HUT) are currently generating profits by utilizing artificial intelligence technology. Meanwhile, TeraWulf (WULF) and Core Scientific (CORZ) are planning to broaden their horizons in the AI sector or have existing initiatives underway.
Based on the findings of experts headed by James Butterfill, it seems that Bitcoin mining could shift towards energy sources that are not connected to the grid (stranded energy), while artificial intelligence (AI) development attracts greater investments in more stable locations.
According to the study, cutting the reward in half will lead to substantial increases in miners’ costs, with electricity and production expenses almost doubling. Mining companies can try to mitigate these additional costs by reducing energy consumption, enhancing mining efficiency, and investing in less expensive equipment.
In Q4, the authors reported an average production cost for one bitcoin, including cash and electricity expenses, at about $29,500 before the halving event. Post-halving, it’s expected that this amount will increase to approximately $53,000 in total. Specifically, the cost of electricity required to mine a single bitcoin is projected to climb up to around $34,900 from its previous level of about $16,300 during Q4.
Based on the predictions of the asset manager, the hashrate could hit 700 exahashes by the year 2025. However, if miners decide to stop using inefficient equipment after the halving, the hashrate might decrease by approximately 10%. After this event, there’s an expectation for hash prices to fall to around $53 per hash per day.
The collective computing strength required to validate transactions and create new blocks in a proof-of-work blockchain system is called hashrate. As reported by CoinShares, miners are proactively handling their financial obligations, with certain ones even using additional funds to pay off debts.
Read More
Sorry. No data so far.
2024-04-22 20:52