The Bitcoin halving could trigger a shift in focus for miners, according to a new report by CoinShares. With production costs rising due to the halving, miners may increasingly turn to artificial intelligence (AI) for new revenue opportunities.
The halving, which occurs roughly every four years, cuts the reward miners receive for processing transactions on the Bitcoin network in half. This is designed to keep inflation in check, but it also makes it more expensive to mine Bitcoin profitably.
A recent report by CoinShares estimates that the average production cost for Bitcoin miners is projected to nearly double from $29,500 to $53,000 after the halving. This significant increase in costs could force miners to explore alternative revenue streams.
One potential solution is AI. Some miners are already generating additional income by using AI to optimize their operations or provide AI-powered services. For example, miners could use AI to improve their energy efficiency or to develop new financial products.
CoinShares, the asset manager who authored the report, also believes that the halving could make stranded energy sites more attractive for Bitcoin mining. Stranded energy sites are locations where energy is produced but cannot be easily transported to consumers. Bitcoin mining can be a way to utilize this energy, which would otherwise be wasted.
The shift towards AI and stranded energy sites is just one possible scenario for Bitcoin miners after the halving. It remains to be seen how miners will adapt to the changing landscape. However, one thing is clear: the halving is likely to put pressure on miners to find new ways to generate revenue.
