Whenever it’s time to write about crypto, you must remember the rule: don’t write about Bitcoin! AI crypto has visited the space with the harvester’s sickle and rendered the digital currency machines obsolete. Experts believe that only 20% of these machines could be saved in the new AI shakeout. You should know that this is not one of those times when Elon Musk declared his love for Crypto and threw in $1.5 billion worth of investment. Well, it’s a time when only the brave can risk testing the waters!
Executives invest in workstation computers as a source of extra income especially in cryptocurrency mining. However, the Wall Street Journal reported a mass migration of companies to AI crypto. This has been reflected in a boom in demand for high-end Nvidia chips which reached an all-time high of 24% increase within 24 hours. Tokens in the artificial intelligence space continue to show significant gains with FET reporting a 4.13% increase while bitcoin rose $1.82% translating into USD26, 431 in the Hong Kong stock trade market. The exponential demand for AI chips hit the crypto business hard. Most of the cryptocurrency machines remain idle with no customers to serve.
Is AI a threat to crypto mining?
One of the crypto giants that have been greatly impacted is Satoshi Spain. The company founder expressed hope for crypto miners that they can still make some money.
“You can still make money from your mining rig. It’s mining 2.0.” Alejandro Ibanez de Pedro.
The entry of AI doesn’t immediately render GPUs useless. The graphic processing units survived the Ethereum network exit. As a result, most of the GPUs were only freed up for the AI industry. Nonetheless, statements by the experts revealed that only 20% of these chips can be repurposed to train AI models.
Unlike other industries, the crypto mining sector is fast becoming mature in terms of its participation in AI. Notably, David Duong, Coinbase Researcher acknowledged the usefulness of the digital crypto machines amidst AI replacements.
“That said, the moderation in VC investing is not unique to the AI sector, and overall, there is still a record amount of dry powder that ultimately needs to find a home. We think the intersection of AI and crypto represent an important opportunity for entrepreneurship looking to build in Web3.”
Read also: AI chips are the hottest deals
What are the Advantages of AI Crypto?
Those who engage in mining Bitcoin understand the pain of the low processing power of a PC. Other challenges in the list include system health issues, availability, and electricity usage. Nonetheless, the increased risk of compromise is the main challenge in conventional crypto mining. Most encrypted communication evades the watchful eyes of the security teams. As a result of undetected compromise, businesses suffer considerable damage.
AI crypto is armed with data security mechanisms and AI compromise-detection tools. One of its record successes was when it picked an executable file, security.111 that had escaped all established protection mechanisms. Other renowned benefits include:
- Analysis of market sentiments for cryptocurrencies
- Predicting what will happen in the cryptocurrency market
- Support decisions on investment choices in terms of risks and benefits
AI-themed crypto offers greater benefits in terms of pattern predictions to enable you to buy and make money.
AI crypto is not a get-rich-fast kind of scheme. AI is largely disrupting the cryptocurrency market and customers are already looking at the other side. The only hope of success resides in repurposing the idle equipment.
Crypto may still be there to stay in the next decades. However, AI crypto will remain to be a permanent part of the deal for both investors and customers.