Good evening. How are you all? I hope things have been nice to you. And I personally am doing really well other than my crypto portfolio. As you have seen the past couple of days the market has been really bad. BTC is down to $86,000. Although it has rebounded a bit, but that was the lowest point within the last few days. And things are not looking well at all. I personally think that maybe the Bull run is over. But then again I don't understand as much as the experts do and I hope I am wrong. Meanwhile, there has been new developments. The BTC miners have found a new business venture. Another surface. My block. Bad, but I am trying to be optimistic here and I hope that my analogies are true.
So a bit of context, last year. BTC was halved. And now the number is at 3.125. and as per the rules mining BTC have become harder. Now industrial estimates say that mining one BTC costs around $100,000. That is an astronomical number and I know the first thing that came to your mind, that BTC itself isn't worth that much. And you are correct. BTC isn't worth that much and that is exactly why these minors are branching into other things. With all that AI is heating up everything around us. If any of you have tried to build a new computer within the last month you have filled the heat of the AI bubble. Component prices are off the roof. The new race is for data centers. And Bitcoin miners think they can contribute to that capacity. I have seen on the internet that many many Bitcoin mining entities are pivoting from mining to providing high performance compute to the AI hyperscalers. And at the moment this is all the rage they can make a lot of money by submitting themselves to the AI God. And if they make that substantial amount of money, they can afford to bleed in their mining business. So if they really pivot towards AI compute, they can generate excess cash which they can burn on their mining rigs and keep both businesses afloat. And if that's not the case, if they simply leave the mining business and go all in on AI, that is also not as worse as it sounds. Because Bitcoin mining will always be there. With already established entities leaving in the market, there will be empty room for others to come in. This will breed new life into the Bitcoin mining community and if even new miners don't come into play then the existing miners get a bigger share of the all mining operation. Which will make it more profitable for them.
So yeah the latest is bitcoin miners are moving towards AI now. I know AI is a bubble and it's going to burst, but for now maybe moving to those AI bubbles and keeping the mining business afloat is a very good idea.