Mark Cuban Warns Halving to Lower Bitcoin Miners’ Earnings

Mark Cuban, Dallas Mavericks owner and ‘Shark Tank’ host, said that the halving will affect Bitcoin miners. However, he is more interested in the possible effect of artificial intelligence (AI). 

When questioned regarding the importance of the bitcoin halving, he noted it would make it more difficult for miners to get compensated. Reducing mining rewards from 6.25 to 3.125 BTC will reduce miner revenue by almost 50%. 

Several Miners to Commit GPUs to Suitable Business

Cuban said that the GPU market is an interesting question concerning the halving. In this case, miners require extra power. Besides, there is extraordinary demand for artificial intelligence from the GPUs. Thus, it is critical to question whether it will alter the mining economics. 

Beyond the cost perspective, it would be essential to establish if it could be a more suitable business to utilize the GPUs to train models.

This will have no direct impact on Bitcoin miners who use ASIC machines, which are inappropriate for general computing needed by artificial intelligence. However, it might impact those still using GPUs to mine cryptocurrencies. This does not mean that AI’s growth does not affect Bitcoin miners. Instead, they have attempted to embrace it.

Bitcoin Miners Expanding to Artificial Intelligence 

Over the past year or so, firms like Hive Digital Technologies and Xive have shifted to artificial intelligence to augment their core mining activities. Mike Ho, Hut 8 Corp’s Chief Strategy Officer, claims that Bitcoin miners have experienced difficulties in finding a home there.

Specifically, he noted that very few miners have been fortunate since it is not a complementary pivot and is not as easy as it seems. The mining structure requirements are lower and inexpensive, and different from artificial intelligence, mining is a linear business that lacks clients. 

Mike also noted that the uptime requirements for artificial intelligence are pretty high, and networking needs numerous fiber connections and intricate engineering to optimize several GPUs.

Bitcoin Miners Hedging Profitability on Price Rally

In the future, he anticipates heightened competition in the future based on the demand for data centers and energy. Nevertheless, he said it is still early in the curve since it will take some time to commercialize sites previously appropriate for services, for instance, mining. 

Meanwhile, miners will be anticipating Bitcoin’s price to remain high for revenues to increase. Halvings have increased prices in the past, thus helping to increase miner revenues as well as the Bitcoin hash rate. However, this is not assured. Cuban claimed he did not know what the price would do.