Bitcoin miners adapt to challenges with AI and mergers amid rising costs
The #bitcoin #mining sector is facing major challenges as it adapts to the effects of the network shrinking by half in April, according to a recent #CoinShares report.
the price of bitcoin currently stands at $72,286, miners are responding to rising operating costs by incorporating artificial intelligence into their processes.
The halving of mining fees in April from 6.25 #BTC to 3.125 BTC per block has increased the cost of mining and worsened profit margins; CoinShares estimates that the average cost of mining a single bitcoin has risen to $49,500 from $47,200 at the beginning of the year.
The companies such as Cormint and TeraWulf are mining BTC with electricity costs of around $15,000 and $19,000, respectively. Meanwhile, other miners, including Marathon Digital Holdings and Hive Digital, have electricity costs in excess of $40,000 per bitcoin. Despite these challenges, many miners continue to invest in new infrastructure and are optimistic about future price increases. Some are turning to artificial intelligence technology to mitigate the drop in profitability associated with bitcoin mining. For example, Hive recently invested $66 million in Nvidia GPUs, which are not designed to work with artificial intelligence.
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