Miners are looking for ways to leverage their artificial intelligence (AI) prowess in crypto mining to bring forth Crypto Mining 2.0. AI is slowly coming in and changing almost every aspect of human life. It is high time crypto miners realize that the technology has the potential to solve some of the critical unchecked challenges in the industry.
Crypto Mining Embraces AI to Evolve Mining 2.0
Major players in digital asset mining are actively exploring the possibilities of artificial intelligence. For example, Hut8 has recently ventured into non-mining services while continuing to invest heavily in high-performance data centers. This would allow them to meet the ever-increasing demand for AI and computing.
In 2022, Hut8 purchased five traditional but powerful IT data centers. After this purchase, some of its GPUs and other supporting servers were busy mining Ethereum. In data centers to perform VFX rendering and machine learning for its customers, primarily in the gaming industry.
Before getting excited about the premise of AI taking crypto mining to the next level, it should be understood that both sectors have unique requirements. Digital asset mining relies on powerful computing resources and custom hardware to solve complex mathematical problems. At the same time, AI relies on data processing, machine learning and high performance computing.
How can these technologies benefit each other?
Merging these two technologies would require addressing unique demands and challenges to address AI and digital asset mining. It would also require highly customized infrastructure, investment strategies, and expertise.
Didar Bekbauov, co-founder and CEO of Bitcoin miner Xive, claims that only altcoin miners can switch to AI computation for mining. The reason mentioned was the use of GPUs, which help to both extract and share the computational workload required to train generative AI systems.
Can Bitcoin Mining Gain benefit from AI?
Nearly 99% of digital asset mining revolves around Bitcoin mining, which uses application-specific integrated circuit (ASIC) miners. These machines cannot be used for anything other than mining BTC. However, the underlying technology for building data centers and mining operations is nearly identical. Large-scale miners can inhabit to build data centers for AI.
Bitcoin miners can leverage their knowledge and expertise to create AI data centers. Their experience in building and maintaining mining facilities can be of great help when building data centers. Additionally, miners can participate by providing something for the global need for computing power.
However, for mining companies to become potential data centers for artificial intelligence, transparency between the two sectors is a primary requirement. Although the software side of AI is evolving rapidly, the hardware side still needs to be improved. Users sometimes have to wait minutes to days to receive a response to their AI prompts.
Mining facilities provide the AI with the required computing power. In turn, the AI can help analyze the data and tell facilities when to increase mining power, how best to save electricity, and more. Technology can also help predict the best time to sell and hold mined currency.
Both digital asset mining and artificial intelligence have their pros and cons, and experts are trying to merge them to get the best of both worlds, which would help these two technologies grow. AI could use the computing prowess of the mining industry, and the mining industry can use the data processing prowess of AI.