Entrepreneur and Dallas Mavericks owner Mark Cuban recently discussed the implications of the upcoming Bitcoin halving. He emphasized its significant impact on miner revenues.
During an interview with The Block, Cuban pointed out that the halving will reduce mining rewards from 6.25 BTC to 3.125 BTC, effectively slashing the income for bitcoin miners by nearly half. However, Cuban expressed greater curiosity about the role artificial intelligence (AI) might play in the mining sector, especially concerning the demand for GPUs.
Cuban highlighted the intense competition between AI’s needs for GPUs and cryptocurrency mining’s demands. He questioned whether the economic landscape of mining could be altered by the booming AI industry, asking if it might be more profitable to utilize GPUs for AI model training rather than mining. This issue primarily affects miners using GPUs for cryptocurrencies other than Bitcoin, which typically relies on ASIC machines.
The intersection of AI and cryptocurrency mining is already seeing practical applications, with companies like Xive and Hive Digital Technologies expanding into AI to bolster their primary mining operations.
See Related: Cryptocurrency Statistics And Insights (2022)
Bitcoin Halving is Coming
Bitcoin halving is a significant event in the cryptocurrency world that occurs approximately every four years, or after 210,000 blocks are mined. During a halving, bitcoin miners’ reward for verifying transactions and adding them to the blockchain is reduced by half. This mechanism was designed by Satoshi Nakamoto, the anonymous creator of Bitcoin, to control inflation by limiting the total number of bitcoins that can ever be in circulation to 21 million.
As of writing, the price of Bitcoin is at $63,760, and 2 blocks remaining until the next Bitcoin halving.
